The U.S. economy is going to fall into a recession next year, says Steve Hanke. An economist is a professor of applied economics at Johns Hopkins University, and that’s not necessarily because of higher interest rates. Steve told CNBC that We will have a recession because we’ve had 5 months of zero money supply growth, and zero M2 growth and the Fed isn’t even looking at it.
Economists use the broad M2 measure as an indicator of total money supply and future inflation. let you know that M2 includes cash, checking, and savings deposits, and money market securities. Hanke warned and says that In recent months, the money supply has stagnated and that’s likely to lead to an economic slowdown. he said “We’re going to have one whopper of a recession in 2023.” in the United States inflation is going to remain high because of “unprecedented growth” in the money supply.
Covid began two years ago that’s why we are having inflation now, and by the way, we will continue to have inflation through 2023 going into probably 2024,” he added.
