Hanke is known for his work as a currency reformer in emerging-market countries such as Albania, Argentina, Bulgaria, Bosnia and Herzegovina, Ecuador, Estonia, Indonesia, Jamaica, Kazakhstan, Lithuania, Montenegro, Russia, Venezuela, and Yugoslavia. He was a Senior Economist with President Ronald Reagan's Council of Economic Advisers from 1981 to 1982, and has served as an adviser to heads of state in countries throughout Asia, South America, Europe, and the Middle East. He is also known for his pioneering work on currency boards, dollarization, hyperinflation, water pricing and demand, benefit-cost analysis, privatization, and other topics in applied economics.