How do we solve the Central Bank Trap? Providing solutions contrary to the interest rate race to the bottom!
A groundbreaking book seeking to address the problems of near-zero interest rates has just been released by a world respected Economist.
Escape from the Central Bank Trap, by Daniel Lacalle, launched earlier this month and focuses in on the problems caused by interest rates and QE whilst promoting the idea of a balanced budget.
Commenting on the current economic situation the world finds itself in, Lacalle stated “In my considered opinion the United States needs to take the first step, defending sound money and a balanced budget, recovering the middle-class by focusing on increasing disposable income, and supporting productivity growth.”
The book also examines the regulation of financial services. Lacalle volunteers that simply “producing hundreds of pages of new rules every week does not mitigate the inherent risks. No amount of regulation limits the impact of artificial money creation and the manipulation of rates”.
In a critique of European politicians, Lacalle goes on to claim that they “just do not understand that banks cannot reduce debt and expand credit everywhere at the same time”.
Daniel Lacalle, who in 2016 was named as one of the 20 most influential economists in the world by Richtopia.com, then goes on to talk about the global financial crisis of 2008, claiming that it “did not come from lack of stimulus, but from excess of it”, adding that “cheap money calls for cheap and poor action”.
The book also seeks to supplement Lacalle’s aims of differentiating between positive and negative inflation, deflation and disinflation, and explaining how disinflation can actually be caused because of positive improvements, such as better technology and increasing productivity.
With more than 25 years experience in economics, energy and finance and being a regular contributor with CNBC, El Español and The Wall Street Journal, Lacalle is also the author of the best-selling book ‘Life In The Financial Markets’ and co-author of ‘The Energy World Is Flat’, both of which have been published in numerous languages.
Escape from the Central Bank Trap, by Daniel Lacalle is a welcome honest view of the developed economies of the world today and an intriguing perspective from a leading economist on how they can survive.
Notes to editors:
• For media comment and interviews contact Derin Cag on 02071750858 or email derin@richtopia.com
• For more information about Daniel Lacalle and his new book visit http://www.dlacalle.com/escape-from-thecentral-
bank-trap-out-now/
• A press-copy of the book is available at https://richtopia.com/CentralBankTrap.pdf