- Published: 21 January 2015
- Written by Editor
Theresa Tedesco of the Financial Post
The heady world of high finance is in a full-blown snit.
It all started when Switzerland’s central bank flip-flopped last week on what appeared to be an iron-clad three-year-old cap on a currency peg against the ailing euro. Denmark responded quickly by cutting its key interest rate to prevent the krone from strengthening as a result. Wednesday, the Bank of Canada — long the darling among central bankers in the post-financial crisis world – followed with a quarter-point rate cut which caught global markets completely flat-footed.
All these sudden central bank moves to loosen their monetary policies were greeted with surprise, shock, even horror by market players. Have the big brains that populate the vaunted world of macro-economics gone mad? What ever happened to forward guidance?
