“Authorities and markets continue to ignore real economy and act on textbook assumptions.” That’s the view of Richard Koo, chief economist at Nomura Research Institute, which he expressed in a research note sent to Nomura’s clients at the beginning of this week.
It’s Richard Koo’s view that:
“The market’s reaction to the BOJ’s action showed that an overwhelming majority of people in the equity and forex markets—both in Japan and elsewhere—continue to hold textbook economic assumptions about how monetary policy will work in today’s environment.“
He goes on to say that:
“In my view, however, the adoption of negative interest rates is an act of desperation born out of despair over the inability of quantitative easing and inflation targeting to produce...
Login required to continue reading.
Setup a free account to get access to this article (no credit card required).
View Full Article
