In this interview, I explain that constant government intervention and “picking winners” is weakening the India economy. Demonetisation, tax hikes, interventionism and constant increases in subsidies to some sectors are weakening internal demand, not improving it.
All posts by Daniel Lacalle
“China is not the future, it is the past” Interview at Right Now Podcast
In this interview we discuss: Continue reading “China is not the future, it is the past” Interview at Right Now Podcast
Trade War Hides Imbalances
The constant headlines about the US-China trade war are hiding the rising imbalances of the Chinese and European economies. Continue reading Trade War Hides Imbalances
Why the ECB should raise, not cut rates
Negative rates are likely one of the reasons behind the lacklustre European growth. Negative rates have worked as a tool to transfer wealth from savers to the indebted governments that have abandoned all structural reforms, while these extremely low rates have also perpetuated overcapacity, incentivised the refinancing of zombie companies and effectively worked as a disguised subsidy on low productivity. Not only those measures have damaged banks, but they have also created very dangerous collateral impacts (read “Negative Rates Have Damaged Banks But This Is Not The Worst Effect”). Continue reading Why the ECB should raise, not cut rates