Deflation: An Underlying Feature of a Healthy Economy

The author reverts the current mainstream discussion of deflation hampering economic growth. The author first revises the definition inflation that is often misinterpreted. He shows that deflation is a natural phenomenon that often follows periods of unsustainable asset-price bubbles. He also argues that by labeling economic policy as „anti-deflationary,“ many governmental policies lead to inflationary policies that destroy the wealth of individuals.

MoreLess

Year of publication:	2001
Authors:	Šíma, Josef
Published in:	Czech Journal of Economics and Finance (Finance a uver). - Institut ekonomických studií, ISSN 0015-1920. - Vol. 51.2001, 10, p. 539-549
Publisher:	Institut ekonomických studií
Subject:	deflation \| central bank \| inflationary policy \| methodology

More details

Extent:	application/pdf
Type of publication:	Article
Language:	Czech
Classification:	B4 - Economic Methodology ; E5 - Monetary Policy, Central Banking and the Supply of Money and Credit ; H1 - Structure and Scope of Government
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008549712