Timing the Recession: Insights from an Economics Professor

Economics professor Steve Hanke warns that a recession could hit as early as the first quarter of 2024, citing the decline in the money supply since July 2022 as an indicator. Hanke believes that economic activity typically responds to changes in the money supply with a lag of six to 18 months. He also notes that the current trajectory of the money supply points towards an imminent downturn. Hanke criticizes the Federal Reserve for excessive money printing and suggests that it may not be possible to reverse inflation back to 2%. He also criticizes Bitcoin as a bubble with no inherent value and criticizes El Salvador's decision to make it a legal tender.