#081 Professor Steve Hanke Sees Decline In Inflation, Recession On The Way

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