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STEVE HANKE LECTURE ON “MONEY, BANKING AND MARKETS”

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STEVE HANKE LECTURE ON “MONEY, BANKING AND MARKETS”

Steve Hanke Lecture on Money, Banking and Markets | Almost exactly 10 years ago, amid the rapidly worsening ‘subprime mortgage crisis’, Lehman Brothers Holdings Inc., was forced to file for bankruptcy. Shortly thereafter, actually within hours AIG collapsed, triggered a run on most money-market funds, which accelerated a cash crunch and ultimately not only wrecked the economy by abolishing millions of jobs. It also caused catastrophic material, social and moral damage. Ever since, countless biased statements and false explanations dominate the political debates.

Prof. Steve H. Hanke will be talking at Liechtenstein University in Vaduz (Sep. 27) and at the LGT Global Investment Seminar in Zurich (Sep. 28). The ‘first Steve Hanke Lecture on Money, Banking and Markets’ thus was timely titled: “A Postmortem on the Policy Blunders that Caused and Extended the Great Recession”.

Steve H. Hanke (Johns Hopkins University and recently appointed as ‘G. v. Haberler Professor, ECAEF’) ranks among the world’s leading and most influential monetary economists. Backed by persuasive arguments, plain facts and a host of charts he not only proved that in sharp contrast to the official narrative, the US monetary policy since 2002 acted pro-cyclical. These policies triggered the notorious bubbles, let them pop up and lead to the “Great Recession” of 2008/2009.

Among other examples, Hanke also exposed H. Paulson’s role and clearly showed that in spite of his given authority to rescue Lehman Brothers and contrary to the distorted public account, Ben Bernanke (then chair of the FED) in a politically motivated panic reaction failed to act appropriately, and thus unleashed the most terrifying moment for the US economy since the Great Depression of the 1930s.

According to Prof. Hanke, we should be more careful of what we read, take for granted and use for investment planning, as 95% of all published financial and monetary reports on policy matters are either ‘false or irrelevant’. After all, there is nothing more practical than a good theory!

Initiated as a co-operation of the ‘European Center of Austrian Economics Foundation, ECAEF’ and the ‘Liechtenstein Academy, LAF’, the ‘Steve Hanke Lecture on Money, Banking and Markets’ is intended as an annual public lecture series at the Liechtenstein Academy (Schloss Freudenfels Campus) and at the University in Vaduz.


*Steve H. Hanke is an American applied economist at the Johns Hopkins University in Baltimore, Maryland. He is also a Senior Fellow and Director of the Troubled Currencies Project at the libertarian Cato Institute in Washington, DC, and Co-Director of the Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise in Baltimore.

 
Past Blogs

The Dollar, Not the IMF, Can Save Argentina

September 26, 2018

The International Monetary Fund’s $50 billion agreement with Argentina is failing. Earlier this month a scheduled $3 billion payment was postponed while the IMF and the country’s government continued to haggle in Buenos Aires. The peso extended its precipitous fall against the greenback.The International Monetary Fund’s $50 billion agreement with Argentina is failing. Earlier this month a scheduled $3 billion payment was postponed while the IMF and the country’s government continued to haggle in Buenos Aires. The peso extended its precipitous fall against the greenback. The backdrop to this misery is President Mauricio Macri’s weak reform program combined with the IMF’s misdiagnosis of Argentina’s problems. Mr. Macri replaced the left-wing populist Cristina Fernández de Kirchner in December 2015. He inherited a rapidly growing public sector, huge fiscal deficits due to massive subsidies for key products, annual inflation of more than 30%, capital controls, and a dual exchange-rate system. With a slim majority in the National Congress, and facing midterm elections in October 2017, Mr. Macri adopted a gradualist approach to reform.

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Professor Steve Hanke Explains Hyperinflation

August 24, 2018

Steve Hanke, professor of economics at Johns Hopkins and head of Cato's Troubled Currencies Projects, is an Austrian—but he's an Austrian who looks at markets first and foremost. He also thinks QE was the right thing for the Fed to do in 2008, Austrians are all wrong to focus on the Fed's balance sheet instead of the M4 "broad money" supply, and US debt is a more distant worry than the risk posed by Trump's tariffs.

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Venezuela's Inflation Breaches 25,000%

June 01, 2018

When it comes to hyperinflation, we can measure it with great accuracy. But, it is impossible to produce meaningful hyperinflation forecasts. During episodes of hyperinflation, their courses and durations change so rapidly, and so dramatically, that predictions are a fool’s errand. Indeed, hyperinflations are so unstable and unpredictable that even forecasting the inflation rate for a coming month with any degree of accuracy is impossible.

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Iran's Rial Takes a Dive and Inflation Soars

May 25, 2018

The Grim Reaper has taken his scythe to the Iranian rial (see chart below). The Islamic Republic of Iran remains in the ever-tightening grip of an economic death spiral. The economy is ever-vulnerable because of problems created by the last Shah, and added to massively by the theocratic regime.

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