560: American Economist and Professor, Steve Hanke, on Rewriting the Rules of Our Financial System
The Strategy Skills Podcast: Strategy | Leadership | Critical Thinking | Problem-Solving16 Juni

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

Here are some free gifts for you:

Overall Approach Used in Well-Managed Strategy Studies free download: www.firmsconsulting.com/OverallApproach

McKinsey & BCG winning resume free download: www.firmsconsulting.com/resumepdf

Enjoying this episode? Get access to sample advanced training episodes here: www.firmsconsulting.com/promo

Avsnitt(499)

121: Strategy is in the details (Monday Morning 8 a.m. #6)

121: Strategy is in the details (Monday Morning 8 a.m. #6)

Hello everyone! This is Monday Morning 8 a.m., a weekly newsletter where we distill the insights from all of the distractions, articles, and emails that you receive in your inbox every day. In this newsletter, we’re going to focus on four major themes from last week’s news.    To listen to the audio version of this newsletter, search for “Strategy Skills” in any podcast app. To get a written copy with links to mentioned articles sign up here: www.firmsconsulting.com/promo

30 Nov 202025min

120: Focus only on valuation is shortsighted (Monday Morning 8 a.m. #5)

120: Focus only on valuation is shortsighted (Monday Morning 8 a.m. #5)

Hello everyone! This is Monday Morning 8 a.m., a weekly newsletter where we distill the insights from all of the distractions, articles, and emails that you receive in your inbox every day. In this newsletter, we’re going to focus on four major themes from last week’s news.    To listen to the audio version of this newsletter, search for “Strategy Skills” in any podcast app. To get a written copy with links to mentioned articles sign up here: www.firmsconsulting.com/promo

23 Nov 202028min

119: How to be a leader (Monday Morning 8 a.m. #4)

119: How to be a leader (Monday Morning 8 a.m. #4)

Hello everyone! This is Monday Morning 8 a.m., a weekly newsletter where we distill the insights from all of the distractions, articles, and emails that you receive in your inbox every day. In this newsletter, we’re going to focus on four major themes from last week’s news.    To listen to the audio version of this newsletter, search for “Strategy Skills” in any podcast app. To get a written copy with links to mentioned articles sign up here: www.firmsconsulting.com/promo

16 Nov 202028min

118: How to build a pandemic strategy (Monday Morning 8 a.m. #3)

118: How to build a pandemic strategy (Monday Morning 8 a.m. #3)

Hello, everyone! This is Monday Morning 8 a.m., a weekly newsletter where we distill the insights from all of the distractions, articles, and emails that you receive in your inbox every day. In this week’s newsletter, we’re going to focus on one overarching theme—risk—and you’ll see that theme running through all of the big stories this week. So let's see how this new Monday Morning 8 a.m. format goes. Every week we will look at 3-4 themes, or one theme and 3-4 subthemes. What are the big stories and what are the big implications. Let us know if you like or dislike the style. If you're enjoying the Monday Morning 8 a.m., I'd love it if you shared it with a friend or two. You can send them here to sign up. We try to make it one of the best emails/podcasts you get each week, and we hope you're enjoying it. Get written version of Monday Morning 8 a.m. with links to articles we mention: www.firmsconsulting.com/promo

9 Nov 202022min

117: Interview with the former CEO of Dunkin' Donuts, Robert Rosenberg

117: Interview with the former CEO of Dunkin' Donuts, Robert Rosenberg

Robert Rosenberg served as chief executive officer of Dunkin’ Donuts from 1963 until his retirement in 1998. For over 35 years! Under Robert's leadership, Dunkin’ Donuts grew from a regional family business to one of America’s best known and loved brands. Robert received his MBA from Harvard Business School, and just weeks after graduating at the age of 25, he assumed the position of chief executive officer. Upon his retirement, Rosenberg had grown the Dunkin’ Donuts chain to over 4,000 stores worldwide with annual system-wide sales in excess of $2 billion. In his book, Around The Corner To Around The World: A Dozen Lessons I Learned Running Dunkin’ Donuts, Robert shares many of the stories behind this historic company and actionable business advice. Checkout out our newsletter "Monday Morning 8 a.m."

6 Nov 20201h 2min

116: What is Netflix’s real strategy? (Monday Morning 8 a.m. #2)

116: What is Netflix’s real strategy? (Monday Morning 8 a.m. #2)

Hi, everyone. This is Monday Morning 8 a.m., a newsletter that goes out—as you guessed it—every Monday. You can listen to the audio version of this Monday Morning 8 a.m. episode by searching “Strategy Skills” in any podcast app! If you want to receive a written version of this podcast, with links to mentioned articles, you can sign up for it on www.firmsconsulting.com/promo   In this newsletter, we have one goal: to help you distill the insights from the noise out there. So here are the big themes we’re noticing in the news this week and the deep insights you should be extracting from those themes.

2 Nov 202032min

115: Tech, pandemics, growth, valuation (Monday Morning 8 a.m. #1)

115: Tech, pandemics, growth, valuation (Monday Morning 8 a.m. #1)

Hi, everyone. This is Monday Morning 8 a.m., a newsletter that goes out—as you guessed it—every Monday. You can listen to the audio version of this Monday Morning 8 a.m. episode by searching “Strategy Skills” in any podcast app or sign up for a written version here!    In this program, we have one goal: to help you distill the insights from the noise out there. So here are the big themes we’re noticing in the news this week and some of the deep insights you should be extracting from those themes.   www.firmsconsulting.com/promo

26 Okt 202021min

114: Design thinking. With IBM Director, Damon Deaner

114: Design thinking. With IBM Director, Damon Deaner

Damon Deaner is a director at IBM. In this interview, we focus on design thinking.  Get sample training episodes from our advanced strategy training programs: www.firmsconsulting.com/promo

14 Okt 20201h 2min

Populärt inom Business & ekonomi

framgangspodden
varvet
badfluence
uppgang-och-fall
rss-borsens-finest
svd-ledarredaktionen
avanzapodden
rss-kort-lang-analyspodden-fran-di
rikatillsammans-om-privatekonomi-rikedom-i-livet
lastbilspodden
fill-or-kill
affarsvarlden
rss-dagen-med-di
kapitalet-en-podd-om-ekonomi
tabberaset
borsmorgon
dynastin
montrosepodden
aktiepodden
rss-inga-dumma-fragor-om-pengar