One of the ironies of the fact that central banks appear to be throwing in the towel on negative interest rate policies (NIRP) is that their elite economist allies appear not to have gotten the memo. A noisy contingent is pushing to eliminate cash, and one of the big justifications is to allow central banks to engage in NIRP more effectively.
Markets are suspecting that central banks are in the process of exiting this fabulous multi-year party quietly, and that on the way out they won’t refill the booze and dope, leaving the besotted revelers to their own devices. That thought isn’t sitting very well with these revelers.
