On January 15, the Swiss National Bank (SNB) shocked international markets by abandoning the 3-year-old exchange rate floor of 1.20 Swiss Franc (CHF) per Euro (EUR). Put simply, this means that the SNB stopped spending billions of Swiss Francs to buy euro-denominated bonds.
ECB President Mario Draghi has been highly effective with his words alone -- moving markets with speeches and little action. However, by doing so he has also set the bar high and expectations for action are becoming the norm.
The rise in the stock market has been relentless. We are living through the greatest macroeconomic experiment in the history of the U.S. Never was so much printed and spent by so few. And I continue to believe that the Dow will see 5,000 before it sees 20,000.
Commentary and debates from some of the most talented brains in economics reveal a myriad of differing opinions surrounding orthodox and unorthodox monetary policy, but one fact we can be certain about -- QE cannot last forever.