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?
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