F.A. Hayek thoroughly demolished the Keynesian anti-deflation argument in the 30s in his critique of "The Paradox of Savings" http://mises.org/daily/2804 http:

F.A. Hayek thoroughly demolished the Keynesian anti-deflation argument in the 30s in his critique of "The Paradox of Savings" http://mises.org/daily/2804 http://mises.org/daily/2804