560: American Economist and Professor, Steve Hanke, on Rewriting the Rules of Our Financial System

560: American Economist and Professor, Steve Hanke, on Rewriting the Rules of Our Financial System

Central banks in major economies have repeatedly misread inflation trends by relying on models that omit a fundamental economic lever: the money supply. In this episode, economist Steve Hanke offers a detailed critique of prevailing post-Keynesian frameworks and the policy missteps that have followed. Drawing on historical and current data, Hanke underscores the predictive power of the quantity theory of money, a model largely excluded from central bank thinking, and explains how ignoring this leads to erroneous inflation forecasts and misguided interventions.

The discussion outlines how inflation, often attributed to exogenous shocks such as supply chain disruptions or geopolitical events, is more reliably explained by changes in the money supply. Hanke presents evidence that inflation today is the result of decisions made one to two years prior, making it critical to focus on monetary trends rather than short-term data fluctuations. He further contrasts U.S. and Chinese monetary responses, highlighting how both under- and over-corrections in money supply growth have resulted in either recessionary pressures or deflation.

Key insights from the episode include:

- The quantity theory of money remains one of the most reliable frameworks for anticipating inflation, yet is absent from mainstream economic models used by central banks.

- Inflation is always a monetary phenomenon, rising or falling primarily in response to shifts in the money supply, not due to external shocks, which only affect relative prices.

- U.S. monetary policy is currently on a path toward recession, not inflation, due to anemic money supply growth since 2022, a trend Hanke predicts will continue unless reversed.

- Regime uncertainty, policy volatility that undermines business investment, amplifies economic stagnation. Drawing parallels to the New Deal era, Hanke warns that unclear or shifting fiscal and regulatory rules will delay recovery even further.

- Most of the money in circulation is created by commercial banks, not central banks. Post-2008 regulations have constrained these institutions, diminishing their role in supporting economic growth.

Taken together, these points call for a recalibration of macroeconomic policy, placing money supply at the center of analysis and re-empowering commercial banks to function as essential components of the financial system. For senior leaders navigating strategic decisions, the episode provides a timely and data-grounded lens on the structural drivers shaping inflation, recession risks, and economic stability.

Get Steve’s book here: https://shorturl.at/t5uDw

Making Money Work: How to Rewrite the Rules of Our Financial System

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166: Tesla, Elon Musk, and the bet of the century. Tim Higgins (WSJ reporter)

166: Tesla, Elon Musk, and the bet of the century. Tim Higgins (WSJ reporter)

Welcome to Strategy Skills episode 166, an episode with Tim Higgins. Get Tim's new book here: https://amzn.to/3BiHWai Tim Higgins is a reporter for The Wall Street Journal. He writes about tech and auto companies, mostly about Apple and Tesla. You can see him regularly on CNBC as an on-air contributor. Prior to this, he worked for Bloomberg News as writer for the Businessweek magazine. Throughout his career of covering big businesses and US Politics, he has won multiple Society of American Business Editors and Writers, Inc. (SABEW) Awards, has received honorable mention from Loeb Awards, and has been a five-time finalist for the Livingston Awards. POWER PLAY: Tesla, Elon Musk, and the Bet of the Century. Tim Higgins: https://amzn.to/3BiHWai Enjoying our podcast? Get access to sample advanced training episodes here: www.firmsconsulting.com/promo We use affiliate links whenever possible (if you purchase items listed above using our affiliate links, we will get a bonus).

28 Aug 202149min

165: Rob Lachenauer, How family businesses span generations

165: Rob Lachenauer, How family businesses span generations

Welcome to Strategy Skills episode 165, an episode with Rob Lachenauer. Get Rob's new book here: https://amzn.to/3iRZ531 Rob Lachenauer is a Managing Partner and the founding CEO of BanyanGlobal. He has been both a consultant and entrepreneur throughout his career. He was a Vice President and Director of BCG for 9 years where he helped multi-national companies plan and implement strategies. He has also worked with family businesses throughout the world by helping them with decision-making while strengthening family relationships. Rob has frequently contributed to the Harvard Business Review, which includes “Making Better Decisions in Your Family Business,” “What Happens When You Lose Your Mentor,” and “Why I Hired an Executive with a Mental Illness.” He also co-authored Hardball: Are You Playing to Play or Playing to Win? with George Stalk. HBR FAMILY BUSINESS HANDBOOK: How to Build and Sustain a Successful, Enduring Enterprise. Rob Lachenauer: https://amzn.to/3iRZ531 Enjoying our podcast? Get access to sample advanced training episodes here: www.firmsconsulting.com/promo We use affiliate links whenever possible (if you purchase items listed above using our affiliate links, we will get a bonus).

1 Aug 202156min

164: Josh Baron, Family business during the pandemic

164: Josh Baron, Family business during the pandemic

Welcome to. Strategy Skills episode 164, an episode with Josh Baron. Get Josh's new book here: " data-userid="751940007443001344" data-orgid= "751940008097312768">https://amzn.to/3iRZ531 Josh Baron is a partner and co-founder of BanyanGlobal, a professor at Columbia Business School, a thought leader and author of Harvard Business Review Family Business Handbook: How to Build and Sustain a Successful, Enduring Enterprise (HBR Handbooks). He has worked closely with family-owned companies, foundations and offices for over a decade now. He has been helping these families define their purpose as owners and establish strategies to accomplish their goals. He is also teaching MBA courses on Family Business Management and Managing Conflict in Family Business. He has also written articles for The Huffington Post, Trust & Estates Magazine, and Family Business Magazine, among others. HBR FAMILY BUSINESS HANDBOOK: How to Build and Sustain a Successful, Enduring Enterprise. Josh Baron: https://amzn.to/3iRZ531 Enjoying our podcast? Get access to sample advanced training episodes here: www.firmsconsulting.com/promo We use affiliate links whenever possible (if you purchase items listed above using our affiliate links, we will get a bonus).

31 Jul 20211h 3min

163: Is it a good time now or should I wait until I become more senior? Author Program Q&A 2.

163: Is it a good time now or should I wait until I become more senior? Author Program Q&A 2.

Learn more and see the application guidelines: https://www.firmsconsulting.com/experts-published-author-program/ Apply: email team@firmsconsulting.com This is the 1st of a 10 episode program to help our clients and customers measurably, radically transform their careers through The Author Program. How would your career, reputation, and earnings change as a published author? Imagine your client interactions when potential and current clients saw your thinking in a published book before they met you? Imagine the time you would save not having to explain your ideas and the value you could add to them? Imagine the fee premium you could earn? Imagine avoiding awkward meetings trying to establish your credibility? Imagine how many potential clients would find you and reach out to you? Enjoying our podcast? Get access to sample advanced training episodes here: www.firmsconsulting.com/promo

24 Jul 20217min

162: Is this good for my career at this point in time? Author Program Q&A 1.

162: Is this good for my career at this point in time? Author Program Q&A 1.

Learn more and see the application guidelines: https://www.firmsconsulting.com/experts-published-author-program/ Apply: email team@firmsconsulting.com This is the 1st of a 10 episode program to help our clients and customers measurably, radically transform their careers through The Author Program. How would your career, reputation, and earnings change as a published author? Imagine your client interactions when potential and current clients saw your thinking in a published book before they met you? Imagine the time you would save not having to explain your ideas and the value you could add to them? Imagine the fee premium you could earn? Imagine avoiding awkward meetings trying to establish your credibility? Imagine how many potential clients would find you and reach out to you? Enjoying our podcast? Get access to sample advanced training episodes here: www.firmsconsulting.com/promo

22 Jul 20217min

161: How publishing a book fast-tracked me to partnership

161: How publishing a book fast-tracked me to partnership

Learn more and see the application guidelines: https://www.firmsconsulting.com/experts-published-author-program/ Apply: email team@firmsconsulting.com This is the 1st of a 10 episode program to help our clients and customers measurably, radically transform their careers through The Author Program. How would your career, reputation, and earnings change as a published author? Imagine your client interactions when potential and current clients saw your thinking in a published book before they met you? Imagine the time you would save not having to explain your ideas and the value you could add to them? Imagine the fee premium you could earn? Imagine avoiding awkward meetings trying to establish your credibility? Imagine how many potential clients would find you and reach out to you? Enjoying our podcast? Get access to sample advanced training episodes here: www.firmsconsulting.com/promo

22 Jul 202127min

160: Rob Barnett, Increase your hire-ability

160: Rob Barnett, Increase your hire-ability

Welcome to. Strategy Skills episode 160, an episode with Rob Barnett. Get Rob's new book here: https://amzn.to/3i9rMbo Rob Barnett is a headhunter, management executive, podcaster, entrepreneur and author of NEXT JOB, BEST JOB: A Headhunter's 11 Strategies to Getting Hired Now (Citadel, June 29, 2021. He founded Rob Barnett Media in 2018, an inclusive platform for thousands of job-seeking professionals and industry leaders, placing the right people in the best jobs. Rob has discovered, hired, and led hundreds of talented creators and executives in senior management roles at MTV, VH1, and Audible/Amazon. He was President of Programming at CBS Radio. A digital pioneer, he founded My Damn Channel, one of the first original online studios and networks. Representing diverse careers, companies, and opportunities, Rob's multi-platform content and no-nonsense approach inspires people to define and sell their best professional brand. Visit RobBarnettMedia.com.  NEXT JOB, BEST JOB. Rob Barnett: https://amzn.to/3i9rMbo Enjoying our podcast? Get access to sample advanced training episodes here: www.firmsconsulting.com/promo We use affiliate links whenever possible (if you purchase items listed above using our affiliate links, we will get a bonus).

14 Jul 202154min

159: Ash Fontana, The AI-first company

159: Ash Fontana, The AI-first company

Welcome to. Strategy Skills episode 159, an episode with Ash Fontana on the future of AI. Ash just published a great book on AI, THE AI-FIRST COMPANY, please see a link below. THE AI-FIRST COMPANY: https://amzn.to/3zRYW7o Among other insights, Fontana shows readers how to: Make AI your company’s first priority. Identify the most valuable data. Build AI teams. Create AI budgets. Integrate AI with existing processes. Measure its effectiveness. Reinvest the profits from automation to build a competitive advantage. About the Author Ash Fontana became one of the most recognized startup investors in the world after launching online investing at AngelList. He then became a Managing Director of Zetta Venture Partners, the first investment fund that focused on AI. The firm was the lead investor in category-defining AI companies such as Kaggle, Domino, Tractable, Lilt and Invenia.  Enjoying our podcast? Get access to sample advanced training episodes here: www.firmsconsulting.com/promo We use affiliate links whenever possible (if you purchase items listed above using our affiliate links, we will get a bonus).

23 Jun 20211h 3min

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