One economist predicts a major recession because the money supply has stagnated (Steve Hanke, Johns Hopkins University, CNBC article on 8/29/2022)..."We will have a recession because we've had five months of zero M2 growth, money supply growth, and the Fed isn't even looking at it." But in the same article, he says inflation is going t…
One economist predicts a major recession because the money supply has stagnated (Steve Hanke, Johns Hopkins University, CNBC article on 8/29/2022)..."We will have a recession because we've had five months of zero M2 growth, money supply growth, and the Fed isn't even looking at it." But in the same article, he says inflation is going to remain high because of "unprecedented growth" in the money supply. He also states that Fed Chair Jerome Powell is "still going on about supply-side glitches" and "he has failed to tell us that inflation is always caused by excess growth in the money supply, turning the printing presses on." Does any of this make sense to you? Is recession a foregone conclusion because of money supply stagnation or growth? And is the M2 now stagnant or still growing?
One economist predicts a major recession because the money supply has stagnated (Steve Hanke, Johns Hopkins University, CNBC article on 8/29/2022)..."We will have a recession because we've had five months of zero M2 growth, money supply growth, and the Fed isn't even looking at it." But in the same article, he says inflation is going to remain high because of "unprecedented growth" in the money supply. He also states that Fed Chair Jerome Powell is "still going on about supply-side glitches" and "he has failed to tell us that inflation is always caused by excess growth in the money supply, turning the printing presses on." Does any of this make sense to you? Is recession a foregone conclusion because of money supply stagnation or growth? And is the M2 now stagnant or still growing?