Macroeconomic Monitor

2019.03.20

Why are economists and politicians so afraid of deflation?

deflation

Wherever we turn, deflation is always portrayed negatively, and every author is quick to present the fight against deflation as the absolute minimum for economic competence. There are two definitions of deflation: one is a “fall in the price level,” as measured by the so-called Consumer Price Index; a definition common to mainstream economists. …

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