Home » Professor Steve Hanke Says US Economy Was Flat Over the Last Year, but Stresses ‘It’s Going to Hit South’ – Economics Bitcoin News

Professor Steve Hanke Says US Economy Was Flat Over the Last Year, but Stresses ‘It’s Going to Hit South’ – Economics Bitcoin News

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In a chaotic economy plagued by central bank tinkering, supply chain problems and blistering inflation, Steve Hanke, an applied economics professor at Johns Hopkins University, predicts that 2023 will see a “substantial recession.” will happen. On Oct. 28, Hanke said he updated the likelihood of a US recession to 90%. This is because we believe the money supply has tightened at an “unprecedented” rate.

Economics professor Steve Hanke says US recession chance is now 90%

Professor Steve Hanke has been critical of central banks around the world, saying on Friday a recession was very likely. Hanke spoke with David Lin, his news anchor for Kitco News. explained He raised the chance of a US recession to 90%. “Where we go depends on where the money supply goes,” Hanke told Lynn on Friday. “The quantity theory of money is how we determine national income decisions.”

An applied economics professor at Johns Hopkins University added:

The money supply surged in early 2020 when COVID hit, but on average it grew about three times faster than was needed to reach the 2% inflation target. As a result, we experienced a lot of inflation.

Inflation is a problem in the United States, and the Personal Consumption Expenditures (PCE) Price Index, the primary inflation indicator of the US Federal Reserve, 0.5% increase in September. Additionally, the September Consumer Price Index (CPI) report It showed that consumer prices jumped to 8.2%. Quantitative tightening has become a big issue as the money supply has shrunk so much, Hanke said, the economics professor stressed in an interview.

“In the last seven months, the money supply has actually contracted by 1.1%,” Hanke told the Kitco anchor. , there is a transmission mechanism: there is a lag between what happens to the real economy, whether the money supply is rising or falling,” Hanke added. An economics professor said he believes these factors will lead the United States into a massive recession.

more Hanke Said News Anchor:

We expect a sizeable recession in 2023. The GDP numbers are great and we can celebrate today. It is no longer negative. I got a positive number. The big picture is that the economy looks flat last year, but it will go south. .

However, Hanke is not a fan of cryptocurrencies like Bitcoin and has criticized the country of El Salvador for adopting Bitcoin as its legal tender.In June 2021, months before Bitcoin (Bitcoin) tapped $69,000 per unit, Hanke explained that “and [Nayib] His country faced “financial bankruptcy”.Bukele hit back at Hanke’s criticism when Bitcoin Reached $60,000 per unit in mid-October 2021.

Hanke is a fan of countries creating currency boards, an idea that leverages the use of monetary authorities to maintain fixed exchange rates for their currencies. Bitcoin, by design, is the antithesis of Hanke’s preferred currency board and his solution. BitcoinThe network of is decentralized and the free market chooses cryptocurrency exchange rates.

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Bitcoin, Bitcoin, Central Bank, consumer price index, COVID, currency board, currency board, David Lin, Economy, economist, Economy, El Salvador, federal reserve system, federal reserve, GDP number, Kikko Anchor, Kikko interview, PCE, Steve Hanke, USD, US economy, USD

What are your thoughts on Steve Hanke’s “fairly big recession”? [is] Did you bake it with a cake? Let us know your thoughts on the matter in the comments section below.

Jamie Redman

Jamie Redman is a news lead for Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written over 6,000 articles for Bitcoin.com News about disruptive protocols currently emerging.

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