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Hanke agreed that it is a modern update of Charles Mackay’s 1841 bubble classic

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Nick Lichtenberg.

“That’s exactly the point,” he said, running through the history of famous financial panics.

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President Trump made big news this week by revealing how much income he’s personally made in his second term. The Johns Hopkins economist, a veteran advisor on monetary policy to several administrations (including the Trump White House), told Fortune that when he saw the big income disclosure, he immediately flashed onto “the economics of big players.” An expert in “dollarization” who has advised Asian, Eastern European, and South American governments, Hanke has spent decades studying market manipulation in developing countries and now sees the same dynamics playing out in Washington. Three characteristics define the phenomenon, according to both Hanke and Roger Koppl, the Syracuse University professor who originated the theory decades ago: the actor is big enough to shift markets, is not disciplined by profit and loss the way ordinary firms are, and operates by discretion rather than any knowable rule. Both Hanke and Koppl frame big player dynamics as a broader structural shift rather than any single politician’s idiosyncrasy.

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