The professor of applied economics at Johns Hopkins University, Steve Hanke believes a “pretty big recession” will take place in 2023. Inflation
had shown consumer prices jumped to 8.2%. Hanke says quantitative tightening is now a big issue as the money supply has contracted significantly, the economics professor stressed during his interview.
“The last seven months, the money supply has actually contracted by 1.1%,” Hanke told the Kitco anchor. “That’s almost unprecedented. That means, of course, you have a big change in the money supply and then there’s a transmission mechanism. There are lags between the thrusts in the money supply, whether it’s going up or it’s going down, and what happens to the real economy,” Hanke added. The economics professor opined that he thinks these factors will lead the U.S. toward a large recession.
Hanke, however, is not a fan of cryptocurrencies like bitcoin and he’s critized the country of El Salvador for adopting bitcoin as a form of legal tender. In June 2021, a few months before bitcoin (