2 ms·
Do you have a second example of deflationary collapse? I don't think the collapse of the Wiemar Republic is a great example. Maybe if we crop off 1 outlier we'l
by roenxi 3y ago
Do you have a second example of deflationary collapse? I don't think the collapse of the Wiemar Republic is a great example. Maybe if we crop off 1 outlier we'll find something we can agree on.
Possibly not of course, I do suspect that the problem is bad debts and the deflation is the last straw before things go bad. There are some well established links between debt and sudden collapses and I tend to blame the debts.
- JumpCrisscross 3y ago> Do you have a second example of deflationary collapse? The Great Depression. Here is a paper that argues deflation is fine: https://www.nber.org/system/files/working_papers/w10329/w10329.pdf https://www.nber.org/system/files/working_papers/w10329/w103.... It’s incredibly convoluted and unorthodox.