Steve Hanke’s Plan to Expand the Dollar
VRIC Media Jul 12, 2026
Summary
Steve Hanke is advising the Trump administration on a dollar strategy to expand worldwide use of the U.S. dollar.
His proposed tool is dollar-based currency boards replacing the discretionary central banks most developing countries now run.
Because a currency board cannot create credit or lend to government, Hanke says countries get lower inflation, lower deficits, and higher economic growth.
Hong Kong's currency board, operating since 1983 with what Hanke calls a perfect record, anchors the argument.
Steve Hanke's takeaways
- Top takeaway Hanke says he is advising the Trump administration on a dollar strategy to expand the use of the U.S. dollar worldwide, with dollar-based currency boards replacing local central banks as one mechanism.
- He advocates that most developing countries should replace their central banks, which run discretionary monetary policy, with currency boards.
- He points to Hong Kong's currency board, in place since 1983, saying its record is perfect.
- He argues currency boards never fail and always produce stability, low inflation, and low deficits because a currency board cannot create credit or lend to fiscal authorities or the government.
- He concludes that currency boards deliver lower inflation, lower deficits, and higher economic growth, calling it a win-win.