What Happens When Yen Collapses? Economist Steve Hanke On Next Currency Crisis
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Economist Steve Hanke explains the yen intervention, the forces driving currency crises, lessons from the 1997 Asian Financial Crisis, and whether another major crisis could be ahead.
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Steve Hanke’s email: hanke@jhu.edu
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*This video was recorded on August 17, 2026
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0:00 – Yen intervention and why it failed
3:59 – Why the yen keeps weakening
9:00 – Yen carry trade and Treasury yields
12:03 – Bond yields, stocks, and gold
14:24 – Japan’s monetary policy problem
16:52 – How the Asian Financial Crisis began
20:27 – Indonesia’s currency collapse
23:34 – How currency boards stopped crises
28:25 – Hanke’s plan to save the rupiah
31:24 – Why the U.S. and IMF opposed the plan
33:03 – Hanke challenges the IMF’s account
48:48 – Russia’s 1998 currency collapse
53:02 – Why currency boards disappeared
56:33 – How Hanke would stabilize the yen
1:00:26 – How Hong Kong survived the crisis
1:05:21 – Defending currencies from collapse
1:09:00 – Could an Asian Financial Crisis happen again?
#economy #investing #japan
35 Comments
When the yen collapse the dollar will go with it. Both systems are identical. U.s. buying yen with euros to devalue the euro, the europeans should be wary.
Defund the IMF, an un-repressented group of idealog researhers terrrorising countries creating crisis after crisis. David, do a video on how IMF created housing downturn in a number of countries including Australia, NZ, Canada by haunting, terrorising and lectured the respective governments. The governments are voted by their people NOT by IMF. IMF can bugger off. They have lectured US too. Such a un-represented group should not have that power. Defund IMF now.
Hanke love bitcoin
the empire is falling and its vassals will be sacrificed
from the beginning with the japan bubble it should have been clear for all economists, that at the end there will be a yen collapse, its only nearly unbeliefable that it lasted so long, but this will make only worse
the usa is not worry about the yen colapse, its worry of japan selling usa treasure bonds…
Very interesting interview! Thanks!
Global Hustlers don't like Currency Boards because it makes it harder to fiddle a nations currency.
HA HA HA HA HA😂😂😂😂😂. GENIOUS SLIMEY ARSEHOLE BESSENT STRIKES AGAIN.
terrible analysis because you're skipping the fundamentals as you explain the theoretical
Basics.. The fact that they have to pay more for oil because of the war in iran is the problem.
Nice little vignette of precisely the kind of economic terrorism conducted by the US – with the IMF not solving crises but deliberately causing 'fires' as Prof Hanke calls it. Bullying behaviour even involving what was once called 'gunboat diplomacy'.
I have lived most of my life in South East Asia and this is an amazing interview and should be taught in universities as a case study. Similar to the fall of Gadaffi and now with Putin or at least they are trying. Putin did not start the war and he is being blamed like Gadaffi, Suharto, Marcos and ther list goes on & on…..This is a very controversial interview and i urge you to be very careful. Hankie is a hero of the free world within economics. He is an endangered species. beware of content like this, because you will not last long if you keep doing content like this. Look what happened to Assange.
Why all “ Economic experts “ are struggling to explain the Japanese economy, financial and monetary policies is because they are ignoring that Japan has been a sidekick for American economy, monetary and foreign policy. It would be expected that US come to the rescue of Yen , not because they want to help Japanese economy or people, they do this to reduce the risk of Bond sell off.
Japan lost its independence to US after WW2.
Read Princes of the Yen, by Richard Werner
David, you give good interview. Hanke's the best. One question I have for Prof. Hanke is the use of the term "nominal GDP". It seems to me that "nominal GDP would refer to the number put out by the government and that "GDP less inflation" would be better known and the "Real GDP". Am I missing something here?
Suharto was a monster not sure why Hanke worked with him. He killed approx 500k on a conservative estimate to 1million ppl. Absolute butcher.
RESPECT 🙏 🫡 ❤🎉
Hanke is always a great interview.
Desperately trying to arrest the fall of the yen … but does the U.S. DOLLAR REALLY CARE or DOES IT? The depreciation of the Japanese yen and the strength of the U.S. dollar are tightly linked by interest rate gaps, meaning higher U.S. rates make the dollar more attractive. Investors sell yen to buy dollars for better profits. This massive shift drives up the value of the dollar while pushing the yen down
Good thought provoking discussion. Thank you 👍
Prof. Hanke, what European countries with high debt and low production/productivity should do to curb the amount of debt? Cheers from Italy!
hanke TOP MAN
That is not solution, this man is talking rubbish. If you see statistics of Bulgarian or Bosnian economy you will see 😂. Specialy when he finished job to complete destroy domestic economy. Mmf is even worst solution…
Only educated and moral people from country in economy problem can make solution for that country.
Imported solutions are always bad.
Hi Mr Hankey!!
Thanks David for inviting Prof. Hanke specifically to talk about Asian Currency Crisis. I have mentioned this a few times before that the chemistry between you is both natural and authentic. This interview is no exception.
Last time he mentioned that Suharto was disliked by Israelis and they wanted someone less anti Israel as Head of the largest Muslim country. He didn't mention it this time. Perhaps an oversight? He also demured when you pushed him to give a currency or two that he would short today.
Thanks to you, I follow him on X. Love his morally courageous stance. TBH I am surprised that he is still at Johns Hopkins!
Best wishes.
A suggestion is to bring someone who has worked in/with IMF and now can talk openly about their erstwhile organization. They can validate or not what our good Prof says.
Doesnt japan own a bunch of US bonds 🤔
Great show with Steve Hanke
This cured my insomnia. Thanks.
Problem in Japan: Currency is losing value: Solution: Print more yen???
Check out junior mining stocks!
I'm still waiting for Hanke's $200 oil prediction. This guy just hates Trump and doesn't care how many times he has to be wrong to prove it.
Your email is wrong, got returned. Did you miss out a 'd' in davi
Congratulations for your excellent interview to profesor Steve Hanke about what happen when Japan´s Yen collapses and the improtance of creating a currency board.
This is really interesting, however do we face currency centralization with two many currency boards? In other words could we create global crises because of all of the dependencies between major currencies?
Was he drunk?
BIG STEVE ALWAYS.