Switzerland Ambushes the Global Economy

The Swiss National Bank just made an astonishing U-turn.

Free to climb.

Photographer: Adrian Moser

The Swiss National Bank's shock move today to stop intervening in the foreign exchange market all but guarantees the European Central Bank will finally introduce quantitative easing when it meets Jan. 22. Switzerland is surrendering before a wave of post-QE money fleeing the euro threatens to make a mockery of its currency policy. It's also capitulating as slumping oil brings global deflation ever closer.

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