Broadening your understanding of currency management

This article has some quite complex material; it does explain how the Swiss tried to hold the CHF down, and the implications of all those francs sloshing around the global financial system. You don't need to read all of it, but you should try to glean:

1. Why they pegged;
2. What forced them to drop the peg, and the impact for the SNB and the economy;
3. Where all the francs they sold to keep the peg ended up, and the implications of a rising franc (similar to the rising $);
4. About two thirds of the way down, in italics, a quote from a John Mauldin newsletter (love that guy!) with a tongue in cheek analysis of fiscal probity a la Switzerland.

It also makes the point that the euro is less like the deutchmark and more like the lira... an interesting point, now I think about it.

The Swiss National Bank won't go bust