I'd pull my emergency fund and short term savings accounts and put it in a safe in my home. The rest of my fiances would be either virtually unaffected or would benefit from negative interest rates.
Physical dollars are an important medium of global liquidity. Taking them out of circulation is not in anyone's interest. In fact, taking them out of circulation would be extremely bad. Hard to communicate how bad this would be. Pretty much a crossing the streams/total protonic reversal outcome.
Could bad outcomes be prevented? Stunts like what was done with Indian currency, or a move to all-digital currency? I don't see it.
Since hoarding of the polymer bills seems like a likely outcome of negative rates hitting consumers, and this would be bad, and in the absence of other preventative measures, I highly doubt we'll see negative rates at the consumer level.
bjo590|5 years ago
torgian|5 years ago
jonahbenton|5 years ago
Physical dollars are an important medium of global liquidity. Taking them out of circulation is not in anyone's interest. In fact, taking them out of circulation would be extremely bad. Hard to communicate how bad this would be. Pretty much a crossing the streams/total protonic reversal outcome.
Could bad outcomes be prevented? Stunts like what was done with Indian currency, or a move to all-digital currency? I don't see it.
Since hoarding of the polymer bills seems like a likely outcome of negative rates hitting consumers, and this would be bad, and in the absence of other preventative measures, I highly doubt we'll see negative rates at the consumer level.