Sep 3, 2015
Steve Hanke is a Professor
of Applied Economics, specializing in currency boards. He is
Co-Director of the Institute for Applied Economics, Global Health,
and the Study of Business Enterprise at The Johns Hopkins
University in Baltimore.
Steve is a Senior Fellow and
Director of the Troubled Currencies Project at the Cato
Institute in Washington, D.C. and a member of the Charter
Council of the Society of Economic Measurement and the Financial
Advisory Council of the United Arab Emirates.
Previously, Professor Hanke was a
Senior Economist on President Reagan’s Council of Economic
Advisers and was also an Advisor to the Presidents of
Bulgaria, Venezuela, and Indonesia.
In 1998, Steve was named one of
the twenty-five most influential people in the world by World
In this episode, you will
- what is a currency
board and the reason why a country should resort to
- about Bulgaria’s currency crisis
in 1997, how hyper-inflation hit 142 percent per month
and what Steve Hanke did to solve the problem.
- why Bulgaria has one of the
lowest fiscal deficits of any country.
- why Montenegro dumped the
Yugolsav Dinar for the Deutschmark during Slobodan Milosevic’s
presidency of Yugoslavia.
- how Montenegro will join
the euro currency without having to do a currency
- if it makes sense to leave a
currency board to join a monetary union and giving
up fiscal autonomy.
- why it’s best for Bulgaria to
stay outside the eurozone due to the issue of moral
- why Greece ran up a fiscal
deficit of 12.7% of GDP when the Maastricht Treaty stated
a strict adherence to a maximum level of 3%.
- how a currency board
removes the moral hazard of a unified currency area by
financing spending with current taxes or the private bond
- if Greece should abandon the
euro and set up a currency board and pegging their currency with
- about Ronald
Reagan’s privatisation programme in the US in the early
- what Hayek was like as a person
and what he thought of Ronald Reagan, The Intellectual.
- Subscribe to the Economic
Rockstar podcast on iTunes and get access to all previous