Deflation: An Underlying Feature of a Healthy Economy
Year: 2001 Volume: 51 Issue: 10 Pages: 539-549
Abstract: The author reverts the current mainstream discussion of deflation hampering economic growth. The author first revises the definition inflation that is often misinterpreted. He shows that deflation is a natural phenomenon that often follows periods of unsustainable asset-price bubbles. He also argues that by labeling economic policy as „anti-deflationary,“ many governmental policies lead to inflationary policies that destroy the wealth of individuals.
JEL classification: B4, E5, H1
Keywords: deflation – central bank – inflationary policy – methodology
RePEc: n/a
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