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How Rate Hikes May Trigger a Recession

How Rate Hikes May Trigger a Recession
Traders and financial professionals work ahead of the closing bell on the floor of the New York Stock Exchange in New York on Dec. 20, 2018. Drew Angerer/Getty Images
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Commentary

The history of economic development can’t be understood without the importance of recession periods. Recessions are often the result of the excess accumulated in previous years. Creative destruction after a period of excess used to drive a stronger recovery and continued economic development. That was until risky assets became the biggest concern for policymakers.

Daniel Lacalle
Daniel Lacalle
Author
Daniel Lacalle, Ph.D., is chief economist at hedge fund Tressis and 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.”
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