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#184 Professor Steve Hanke, Who Nailed The 9% Inflation Call, Sees It Falling To 2.5%-3% By Year-End And A Recession On The Way
Description
Steve H. 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.
Three 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%. And he expects inflation will fall to his expected range of 2.5-3% by the end of the year. He also expects that we'll enter a recession later this year or early next year.
Twitter/X: https://x.com/steve_hanke
Timestamps:
00:00 Introduction and welcome Professor Hanke
01:05 Big picture, macro view, Quantity Theory of Money
06:20 Inflation headed to 2.5-3% zone by year-end, sees recession ahead
07:40 Grading the Federal Reserve's policies, they get an 'F'
12:40 How the money supply works
16:21 Inflation below 2%?
17:30 Debt and deficit
21:52 Need for a Constitutional amendment to control government spending
23:48 End game if we don't address the debt situation
24:44 A fiscal illusion