In the aftermath of two failed banks, the crypto-focused Signature Bank and the 16th largest U.S. depository Silicon Valley Bank (SVB), economists are questioning the role of the Federal Reserve in the banking crisis.
Former economic advisor to President Reagan, Steve Hanke believes that the Fed’s contractionary policies have contributed to the current situation and that the central bank is poised to bring more pain.
Hanke, a professor of applied economics at Johns Hopkins University, emphasized the importance of money supply (M2) and its impact on the economy and inflation. In his view, the Federal Reserve needs to pay more attention to this economic indicator….