of inflationary and deflationary episodes. We therefore underestimate the shortfall in real activity during deflation … with declines in real activity; (iv) Transitory and persistent deflations, as well as, monetary and nonmonetary deflations …

I study the link between real activity and deflation, taking into account measurement problems in 19th century CPI data … activity and deflation may be attenuated because of the errors-in-variables problem. I find that real activity was on average … substantially lower during 19th century deflations in the US, after controlling for measurement error using an IV …

of inflationary and deflationary episodes. We therefore underestimate the shortfall in real activity during deflation … with declines in real activity; (iv) Transitory and persistent deflations, as well as, monetary and nonmonetary deflations …

bias. (iv) The metal-currency regimes (competing currencies and bimetallism before World War 1, and to some extent flexible … inflation targeting, were associated with a deflation bias. (v) Persistent deflations in terms of the CPI only occurred under …