Episode Details

Steve H. Hanke (@Steve_Hanke), professor of applied economics at Johns Hopkins University and the founder and co-director of the Institute for Applied Economics, Global Health, and the Study of Business Enterprise, joins Julia La Roche on episode 81 for a wide-ranging conversation on the economy.

Two years ago, using the quantity theory of money — which links asset prices, economic activity and inflation to changes in the money supply—Professor Hanke accurately predicted that inflation would be persistent and rise to the highest levels in a generation between 6 to 9%. Inflation topped out at 9.1%. Hanke thinks the inflation story is over, and a recession is likely on the way. 

Read “Did Lockdowns Work?” Here: https://iea.org.uk/wp-content/uploads/2023/06/Perspectives-_1_Did-lockdowns-work__June_web.pdf

The Hanke-Cofnas Gold Sentiment Score: https://thegoldsentimentreport.com/

0:00 Open

0:47 Money supply drives the economy

3:00 Inflation story is basically over 

4:49 Economic picture around the world 

5:25 Inflation is a local problem

7:02 The Fed has been a complete disaster 

12:13 One-to-one linkage in change in money supply and inflation 

13:00 Path to becoming a Monetarist 

15:00 Why doesn’t the Fed pay attention to the quantity theory of money 

18:24 Recession 

20:47 Preparing for a recession 

22:18 Long-term bullish on gold 

27:29 Covid lockdowns biggest policy mistake in modern times