Will 2020 Be The Year ‘Politicians’ Implied Vol’ Finally Overwhelms Central Banks?

Back in February, we introduced readers to the idea that the Global Economic Policy Uncertainty Index can be used to proxy what BofAML has called "politicians’ implied vol". That's a pretty liberal interpretation of the gauge. It's actually an index quantifying the frequency of stories in newspapers which mention uncertainty about economic policy, but it'll work. BofAML's European credit derivatives team likes to plot that index against rates vol. in order to demonstrate the extent to which