America’s Roundtable: Dr. Steve Hanke – Part II – The US Economy, Money and Monetary Policy

Continuing to explain the cause of the recent financial and economic crisis, Dr. Steve Hanke lays down how the banks and hedge funds leveraged up – by borrowing at a lower rate and investing at a higher rate – following the incentives provided by Fed which pushed the interest rates down to 1%. Dr. Hanke, “Fed enabled these bad things to happen by pushing the interest rate down so low.” Dr. Hanke details his solution to get the economy going and how to prevent the future crisis from happening. We discuss Dr. Hanke’s article published in the August 2012 issue of Globe Asia under the title, “Money, Where’s the Money?” www.cato.org www.thejakartaglobe.com Further reading: www.cato.org www.thejakartaglobe.com www.cato.org Events: “Greed, Irresponsibility, or Policy Mistakes: What Caused the Recession?,” February 5, 2010 [Capitol Hill Briefing] Link: www.cato.org Dr. Steve Hanke’s biography: Steve H. Hanke is a Professor of Applied Economics and Co-Director of the Institute for Applied Economics, Global Health, and the Study of Business Enterprise at The Johns Hopkins University in Baltimore. Prof. Hanke is also a Senior Fellow at the Cato Institute in Washington, DC; a Distinguished Professor at the Universitas Pelita Harapan in Jakarta, Indonesia; a Senior Advisor at the Renmin University of China’s International Monetary Research Institute in Beijing; a Special Counselor to the Center for Financial Stability in New York; a member of the National Bank of Kuwait’s …