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> If the economy is doing well, all this can be offset by just keeping interest rates low There's your condition; there can be others that don't fit into a sin
by djur 11y ago
> If the economy is doing well, all this can be offset by just keeping interest rates low
There's your condition; there can be others that don't fit into a single blog post aimed at American readers. Various deflationary measures are also recommended by orthodox economists in cases of hyperinflation.
- nickff 11y agoI cited an economist who never mentioned anything about the size of an economy when talking the evils of deflation. You are moving the goalposts. What is your new demand? That I prove a negative? That I have to quote an economist who says "deflation is bad, no matter the size of the economy"? The post you responded to said: "The theory that deflation is bad for an economy doesn't say "but only when that economy is over a certain size". It is an absolute theory that claims to apply everywhere.", not that deflation hawks said economy size doesn't matter (it is implied through omission). Please accept that your curt and dismissive comment was falsified by a random commenter on HN who spent literally 30 seconds on Google, and typed in "Krugman deflation<CR>".
- djur 11y agoI am looking for a claim that "deflation is bad... is an absolute theory that [applies] everywhere." 'Size of economy' is just one possible exception that would belie an absolute theory that applies everywhere. By the way, I have not been insulting to you, and I would appreciate the same consideration.