Daniel Lacalle

Economist Daniel Lacalle argues that central banks are powerless to resolve the growing sovereign debt bubble, warning that monetary policy cannot offset unsustainable levels of government borrowing. His comments come as debt loads in major economies keep rising and markets weigh how governments will manage refinancing costs if central banks step back.

Economist Daniel Lacalle argues that central banks are unable to resolve the growing sovereign debt problem facing advanced economies. His commentary contends that monetary policy cannot offset unsustainable government borrowing, and that fiscal restraint rather than financial engineering is needed. The piece feeds into a wider debate over debt levels, interest rates and the limits of central bank intervention.