the classic is Irving Fisher's little book on the debt deflation theory of depressions (1933?). Fredrich Mishkin's money & banking textbook also has some information (in chapter 8). The main problem with deflation -- which is more than just falling prices but also would include falling money wages -- is that it encourages debt burdens to rise, along with it bankruptcy, which encourages further deflation, etc.
Jim Devine jdevine@xxxxxxx & http://bellarmine.lmu.edu/~jdevine
-----Original Message-----
From: joanna bujes [mailto:joanna.bujes@xxxxxxxxxxxx]
Sent: Wednesday, July 24, 2002 10:18 AM
To: pen-l@xxxxxxxxxxxxxxxxxxx
Subject: [PEN-L:28444] Re: RE: The D word surfaces
If anyone has any interesting reading on deflation, could the please cite it? (There's a lot of stuff on inflation, but no so much on deflation.)
Thanks,
Joanna
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