Daniel Lacalle

Daniel Lacalle, PhD, is a professor of global economy at IE Business School in Madrid, an economist, and a fund manager. He was Ranked as one of the top twenty most influential economists in the world in 2016 and 2017 by Richtopia, and the author of the bestselling books Freedom or Equality (2020), Escape from the Central Bank Trap (2017), The Energy World Is Flat (2015), and Life in the Financial Markets (2014).

Ticking Time Bomb

Global Debt Levels Are a Ticking Time Bomb

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The relentless increase in global debt is an enormous problem for the economy. Public deficits are neither reserves for the private sector nor a tool for growth. Bloated public debt is a burden on the economy, making productivity stall, raising taxes, and crowding out financing for the private sector. With each passing year, the global debt figure climbs higher, the burdens grow heavier, and the risks loom larger. The world’s financial markets ignored the record-breaking increase in global debt levels to a staggering $313 trillion in 2023, which marked yet another worrying milestone.

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Soft Landing

The Dangerous Myth of a “Soft Landing”

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Despite elevated inflation, the United States government is spending more than ever, which means consuming more units of issued currency. Tim Congdon at the Institute of International Monetary Research shows how the inflationary burst was directly linked to broad money growth due to rising government deficit spending. Market participants and economists like to believe that the central bank will manage the economy as if it were a car. The current optimism about the U.S. economy reminds us of the same sentiment in 2007 when no one seemed to worry about rising imbalances.

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BRICS Common Currency

Will a New BRICS Currency Dethrone the U.S. Dollar?

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At their 2023 summit in South Africa, BRICS countries committed to study the feasibility of a new common currency. Russia is especially interested in alternatives to the Dollar since his invasion of the Ukraine resulted in the Dollar, SWIFT, and international finance was used as a weapon against Russia. In today’s article Daniel Lascalle looks at the viability of an alternative BRICS currency.

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European Energy Crisis

The European Energy Crisis May Be Back Soon

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Unfortunately, the European Union bureaucrats declared the end of the energy crisis as if it were the result of decisive policy action, but the reality is that the energy problem in the EU was only diminished by purely external factors: a very mild winter and the decline in global commodity prices due to the central bank rate hikes. Thus, the energy crisis remains, and the problems of security of supply and affordability of the system persist.

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EuroZone Bear

The Eurozone Falls into Recession as “Stimulus” Fails

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Despite bullish sentiment, the Eurozone fell into recession in the first quarter of 2023, and social programs have also failed. Many blame rate hikes for this decline but in the following article, Professor Daniel Lacalle looks at the facts behind Europe’s dismal performance despite falling energy and commodity prices.

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