Part 3/11:
Looking ahead to 2024, Hanke discussed predictions made at the beginning of the year regarding inflation and GDP growth. Utilizing the QTM, he and his co-author anticipated a year-end Consumer Price Index (CPI) reading between 2.5% to 3%, a forecast they believe aligns with observable trends. While they accurately predicted inflation trends, the anticipated slowdown in the real rate of GDP growth has not materialized as rapidly as expected. Hanke attributes this delay in part to ongoing adjustments in money supply dynamics, which he underscores as the primary driver of economic indicators.