Thoughtful Money with Adam Taggart cover image

Thoughtful Money with Adam Taggart

Steve Hanke: Shrinking Money Supply = Recession And Sub-2% Inflation By End Of Year

Mar 31, 2024
Economics expert Steve Hanke predicts sub-2% inflation by year-end after accurately forecasting CPI changes. Discussions include recession risks, AI bubble comparisons, money supply impacts, GDP implications, and the importance of fiscal reforms for financial stability.
01:27:16

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • Money supply contraction may lead to recession and sub-2% inflation by year-end.
  • Global economic challenges include geopolitical tensions and market valuations risks.

Deep dives

Warning Signs of an Impending Recession and Inflation Anticipation

The contraction in the money supply since March of 2022, combined with expectations of inflation to be around 2 percent or lower by the end of the year, signals a possible recession later this year. The significance of changes in the money supply as an economic fuel is emphasized, highlighting the historical correlation between money supply contractions and ensuing recessions.

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