During the first stage of a two - stage cycle, many
central banks and governments
perceive that their economies can gain an advantage
by weakening their currency on the foreign exchange market.
Negative interest rate policy (NIRP) is not bolstering economic growth; asset purchases
by foreign
central banks have merely provided an additional avenue for foreign money to find its way into positive yielding U.S. debt and the
perceived safety of U.S. stocks.