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Podcast: The Strategy Skills Podcast: Strategy | Leadership | Critical Thinking | Problem-Solving
Episode: 560: American Economist and Professor, Steve Hanke, on Rewriting the Rules of Our Financial System
Description: 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. Â The discussion outlines how inflation, often attributed to exogenous shocks such as supply c...