Daniel Lacalle | The Libertarian Institute

The Fed Panicked, and Its Rate Cut Is Making the Economy Worse

by Daniel Lacalle | Mar 9, 2020 | Economics, Featured Articles

The Federal Reserve's monumental mistake of cutting rates this past week can only be understood in the context of the rising God complex among central planners: an overwhelming combination of ignorance and arrogance. Less than a week ago, several members of the Federal Reserve board reiterated—rightly so—that cutting rates would not have a significant impact in a supply shock like the current one. We must also remember that the Federal Reserve already cut rates in 2019 and inflated its balance sheet by 14 percent to almost all-time highs in recent months, completely reversing the...

Is China a Better Trading Partner for Latin America Than the US?

by Daniel Lacalle | Dec 30, 2019 | Economics, Featured Articles, Foreign Policy

Part of the economic debate in Latin America, particularly in Argentina after the elections, focuses on what type of financial and trade relationship is most convenient for the region, and several discussions consider the merit of strengthening relations with China instead of the United States The first thing we should understand is that it is a false dilemma. Latin America is not in an economic situation where it can afford to “choose” trading and financial partners. Therefore, the answer is simple: Latin American countries must strengthen their commercial relations with all countries,...