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It's not that inflation was impossible. It's that periods of inflation were offset by periods of grinding deflation depressions.
by ProjectArcturis 5y ago
It's not that inflation was impossible. It's that periods of inflation were offset by periods of grinding deflation depressions.
- runeks 5y agoThere’s no connection between falling prices and depression. At least that’s what Milton Friedman concluded in A Monetary History of the United States, even though he initially assumed there would be.
- ProjectArcturis 5y agoWell, Friedman says inflation is driven by the money supply, which is partly true. But it's also true that a shrinking money supply is associated with both deflation and recession/depression.