Escape from the Central Bank Trap.
“The central bank trap is clearly anything but an easy one to get out of.” “In addition to structural reforms to promote lower government spending and higher efficiency, Lacalle recommends tax cuts to let households and SMEs thrive”.
“Daniel Lacalle offers the right mix of realism and optimism”
“To escape the trap of money printing, one has to understand why the trap didn’t work to begin with. Lacalle is one of the leading next generation economists who can simplify the complex. He’s neither a mainstream academic nor a flailing economic pundit. His teachings come from a market practitioner’s perspective. This book is about the economic truth.”
Keith R. McCullough. Chief Executive Officer, Hedgeye Risk Management
“Escape from the Central Bank Trap provides a penetrating framework for understanding the co-dependencies among today’s monetary policy, the economy and the financial markets. Lacalle’s book draws out how these co-dependencies developed, the risks that have since evolved, and outlines the necessary tough medicine needed to return to a more sustainable condition. By distilling today’s complex economic and monetary challenges succinctly, Lacalle provides us with a road map that an economist, market practitioner, or anyone who cares about long term economic health can grab hold of.”
Michael Purves. Chief Global Strategist, Weeden & Co.
“Cheap money becomes very expensive in the long run.” With this quote, Daniel Lacalle captures succinctly the myriad fallacies associated with modern, activist, inflationist central banking and misguided economic policy more generally. This book is a tour-de-force expose and critique of many such popular policy delusions which might appeal to self-serving politicians seeking to avoid hard choices, but undermine the economic health of their constituents. As Daniel Lacalle makes clear, reality is a harsh mistress, even if this only becomes evident in the long-run. Indeed, this time-inconsistency between the interests of economic officials and their constituents is itself a huge part of the problem. Fortunately, in this book, Daniel offers up some compelling solutions. Anyone seeking a deeper understanding of the mess that central banks have created should read this book. Moreover, readers can take the proposed, practical solutions therein to their political representatives and apply pressure for the fundamental monetary and economic policy reforms required to “escape from the central bank trap.”
John Butler, Economist and author of “The Golden Revolution”