Nomura's Koo Takes On Krugman Over Quantitative Easing, Says Price Has Yet To Be Paid

Are markets in a “calm before the storm?” Is there a price yet to be paid for quantitative easing? Such are the questions that Nomura Chief Economist Richard Koo tackles in a March 1 report that lays the foundation for a potential market gyrations to come and counters comments made by economist Paul Krugman on the topic.

Withdrawal of Quantitative Easing Difficulties: December’s 1/4 point interest rate rise had the impact of a 1 1/4 rate rise

December’s 0.25 basis point rate hike elicited a negative stock market reaction that had the magnitude of a 1.25 basis point rise, St. Louis Fed President James Bullard pointed out....