Steve Hanke’s thoughts on Monetary Regime….

Steve Hanke, who was instrumental in establishing new monetary regimes in developing nations like Argentina and Montenegro, stated that institutional reforms are necessary for Sri Lanka to attain long-term debt sustainability.

In order to access a $2.9 billion IMF loan that was approved in September and restore stability to its public finances, the South Asian nation must overcome its worst financial crisis in decades.

Hanke, who is currently a professor of applied economics at Johns Hopkins University, stated on Thursday’s episode of CNBC’s “Squawk Box Asia” that these countries “will always remain in the same… situation that they’ve been in for a long time” unless the institutions and the rules of the game governing them are changed.