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Opinion

Markets Crash as Monetary Laughing Gas Fades

Markets Crash as Monetary Laughing Gas Fades
A Wall Street sign in front of the New York Stock Exchange on Sept. 16, 2022. Yuki Iwamura/AP Photo
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Commentary

The main issue in the economy is that there are two generations of market participants who have only witnessed expansionary policies. That’s why the most pressing question for investors isn’t where earnings are headed or what the rate of change in economic growth is, but when central banks will pivot.

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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