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.
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.