Years of low rates reduced capital expenditure and fueled a dangerous bubble. Now, real investment is back. Gross fixed capital formation is up 8 percent this year after years of stagnation, and capital repatriation exceeds $300 billion. Continue reading Should The Fed Change Policy?
All posts by Daniel Lacalle
Outlook for Global Growth. Is The Downgrade Over?
Global growth estimates for 2019 have been slashed by 10% in 2018. What do we expect for 2019?
China Stimulus Is Not A Catalyst
China presents many similarities in its economic model with the central-planned economies of the 70s. Continue reading China Stimulus Is Not A Catalyst
The ECB’s Quantitative Easing Failure
The main reason why the ECB quantitative easing program has failed is that it started from a wrong diagnosis of the eurozone’s problem. That the European problem was a demand and liquidity issue, not due to years of excess. Continue reading The ECB’s Quantitative Easing Failure