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To dismiss concerns over deflation as a "tired argument" is to ignore a good amount of serious academic research (which has been conducted over nearly a century
by legutierr 13y ago
To dismiss concerns over deflation as a "tired argument" is to ignore a good amount of serious academic research (which has been conducted over nearly a century) about the role that deflation has to play in exacerbating (and possibly triggering) economic depressions.
Although the point is contested, many economists believe that the competing interests you describe will not balance out.
Some Wikipedia links:
http://en.wikipedia.org/wiki/Deflation#Deflationary_spiral http://en.wikipedia.org/wiki/Deflation#Deflationary_spiral
http://en.wikipedia.org/wiki/Debt_deflation http://en.wikipedia.org/wiki/Debt_deflation
- wyager 13y ago> is to ignore a good amount of serious academic research Economics is perhaps second only to psychology in the amount of internal inconsistency it experiences as an allegedly somewhat scientific field. >(which has been conducted over nearly a century) Is this supposed to convince me? Half of contemporary economic theory gets thrown out the window every few decades. >Although the point is contested No shit. Equally legitimate disciplines of economics reach completely different conclusions on the matter, which doesn't say much for the legitimacy of overarching economic theory in general. Just as a very basic overview, here's some of what Wikipedia has to say about it: http://en.wikipedia.org/wiki/Price/wage_spiral http://en.wikipedia.org/wiki/Price/wage_spiral http://en.wikipedia.org/wiki/Stagflation http://en.wikipedia.org/wiki/Stagflation
- deleted 13y ago[deleted]