Escape from the Central Bank Trap, Second Edition: How to Escape from the $20 Trillion Monetary Expansion Unharmed (Paperback or Softback)

Escape from the Central Bank Trap is about realistic solutions for the threat of zero interest rates and excessive liquidity.

The financial crisis was much more than the result of an excess of risk. It is essential to understand that the same policies that created each subsequent bust are the same ones that have been implemented in the past years, through Quantitative Easing (QE) to allegedly "solve" this crisis.

In this book, the author explains how, through lower interest rates and the artificial creation of money, central banks have created a massive liquidity trap, perpetuating bubbles, incentivizing high debt, and increasing financial risk.

The objective of this book is to present solutions in fiscal and monetary policy that can be implemented today, while at the same time debunking magical solutions offered by some authors, particularly the so-called Modern Monetary Theory. The author also explores the impact of monetary expansion on commodities and Emerging Markets, Trump's economic policies, Japan's fight against stagnation, Russia's central bank unique strategy, and the European Union model.

Escape from the Central Bank Trap is about realistic solutions for the threat of zero interest rates and excessive liquidity. Overcapacity, high debt and perverse incentives to assault taxpayers and consumers are not ingredients of welfare, but of secular stagnation.

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 rest of the OECD will follow. Because supply-side policies work.

Our future does not need to be low growth and high debt. We cannot expect humanity to progress if we enslave future generations with unsustainable debt levels just to perpetuate the imbalances of an inefficient economic model.

Cheap money becomes very expensive in the long run. There is an escape from the Central Bank Trap.

Daniel Lacalle is a PhD economist, chief investment officer at Tressis Gestión, and professor of global economy. Holds a PhD in economics, the certified international investment analyst title, a post graduate degree in IESE, and a masterʼs degree in economic investigation (UCV). He is a member of the advisory board of the Rafael del Pino Foundation, and professor at IE business school and the Institute of Stock Market Studies (IEB). He was ranked one of the Top 20 most influential economists in the world in 2016 (Richtopia).