Steve H. Hanke, professor of applied economics at Johns Hopkins University and the founder and co-director of the Institute for Applied Economics, Global Health, and the Study of Business Enterprise, joins Julia La Roche on episode 81 for a wide-ranging conversation on the economy. Three years ago, using the quantity theory of money — which links asset prices, economic activity and inflation to changes in the money supply—Professor Hanke accurately predicted that inflation would be persistent and rise to the highest levels in a generation between 6 to 9%. Inflation topped out at 9.1%. And he expects inflation will fall to his expected range of 2.5-3% by the end of the year. He also expects that we'll enter a recession later this year or early next year. Twitter/X: https://x.com/steve_hanke Timestamps: 00:00 Introduction and welcome Professor Hanke 01:05 Big picture, macro view, Quantity Theory of Money 06:20 Inflation headed to 2.5-3% zone by year-end, sees recession ahead 07:40 Grading the Federal Reserve's policies, they get an 'F' 12:40 How the money supply works 16:21 Inflation below 2%? 17:30 Debt and deficit 21:52 Need for a Constitutional amendment to control government spending 23:48 End game if we don't address the debt situation 24:44 A fiscal illusion