America's Roundtable

Dr. Steve Hanke | US Inflation Surge is Harbinger of What’s to Come | Cuba Protests: The Impact of Socialism | Currency Boards

July 24th, 2021

Join America's Roundtable co-hosts Natasha Srdoc and Joel Anand Samy with Dr. Steve H. Hanke, a leading world expert on currency boards, measuring and stopping hyperinflation, privatization, currency and commodity trading, water resource economics, and other topics.

A professor in the Department of Environmental Health and Engineering at the Johns Hopkins University in Baltimore, Maryland, Dr. Hanke is co-founder and co-director of the Institute for Applied Economics, Global Health, and the Study of Business Enterprise, an interdivisional Institute between the Krieger School of Arts and Sciences and the Whiting School of Engineering.

The institute’s extensive research and publishing focuses on applied economics and finance, business history, and public health. Dr. Hanke is director of the Troubled Currencies Project at the Cato Institute and a senior fellow at Cato’s Center for Monetary and Financial Alternatives.

Further reading — recent articles and op-eds authored by Dr. Steve H. Hanke:

The Wall Street Journal: Too Much Money Portends High Inflation
The Fed should pay attention to Milton Friedman’s wisdom.
By John Greenwood and Steve H. Hanke
July 20, 2021

Brief excerpt via WSJ:

"In his Feb. 23 testimony to Congress, Fed Chairman Jerome Powell said that the growth in the money supply, specifically M2, “doesn’t really have important implications.” The experts, the press and the bond vigilantes were as quick to unlearn monetarism, if they ever had learned it, as Mr. Powell. Reporting about U.S. inflation rarely contains the words “money supply.” We are repeatedly told that the most recent upticks in inflation are anomalous and “transitory.”

Wrong. The inflation upticks aren’t temporary and were predictable, driven by an extraordinary explosion in the money supply. Since March 2020, the M2 has been growing at an average annualized rate of 23.9%—the fastest since World War II. There is so much money out there that banks don’t know what to do with it. Via reverse repurchase agreements, banks and money-market funds are lending money to the Fed to the tune of $860 billion. That’s unprecedented."

Official Monetary and Financial Institutions Forum: US inflation surge is harbinger of what’s to come

Money supply growth is feeding into economy and Powell’s position is wrong
By Steve H. Hanke
May 13, 2021

"Armed with those numbers and the monetarist model for national income determination, it is obvious that April’s year‐​over‐​year consumer price index inflation rate of 4.2% is simply a harbinger of more to come. This haunting spectre could spell the end of President Joe Biden’s triumphal march."

Brief bio:

Recognized globally for his expertise, Hanke advises a number of public and private institutions. A member of the Charter Council of the Society of Economic Measurement and of Euromoney Country Risk’s Experts Panel, he also served on the Governor’s Council of Economic Advisers in Maryland in 1976-77 and as a Senior Advisor to the Joint Economic Committee of the U.S. Congress in 1984-88.

As a senior economist on President Reagan’s Council of Economic Advisers, he led a team of economists in re-writing the federal government’s Principles and Guidelines for Water and Land Related Resources Implementation Studies. In addition, he was responsible for designing Reagan’s major privatization initiatives. A faculty member of the JHU Global Water Institute, Hanke remains a sought-after expert on municipal water system privatization.

His international appointments also include state counselor to both the Republic of Lithuania in 1994-96 and the Republic of Montenegro in 1999-2003. He advised the presidents of Bulgaria (1997-2002), Venezuela (1995-96), and Indonesia (1998). He played an important role in establishing new currency regimes in Argentina, Estonia, Bulgaria, Bosnia-Herzegovina, Ecuador, Lithuania, and Montenegro. Hanke has also held senior appointments in the governments of many other countries, including Albania, Kazakhstan, the United Arab Emirates, and Yugoslavia.

A well-known currency and commodity trader, Hanke is chairman of the Supervisory Board of Advanced Metallurgical Group N.V. in Amsterdam and chairman emeritus of the Friedberg Mercantile Group, Inc. in Toronto. During the 1990s, he served as president of Toronto Trust Argentina in Buenos Aires, the world’s best-performing emerging market mutual fund in 1995. |

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America's Roundtable is co-hosted by Natasha Srdoc and Joel Anand Samy, co-founders of International Leaders Summit and the Jerusalem Leaders Summit.

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