2 votes

Some quality info to fight the deflation myth

From the Fed itself........"Deflation and Depression: Is There an Empirical Link?" studying deflation in a historical perspective and if it actually leads to depressions:

http://minneapolisfed.org/research/sr/sr331.pdf

Their conclusions "The data suggest that deflation is not closely related to depression. A broad historical look finds many more periods of deflation with reasonable growth than with depression and many more periods of depression with inflation than with deflation. Overall, the data show virtually no link between deflation and depression"




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riddle me this. if we have

riddle me this. if we have deflation and someone takes out a loan to start a business, then how will that person pay back the loan if too much deflation has occurred to his output prices?

23

If...

"If...someone takes out a loan..." Inherently defining deflation within the question. Liquidity gets to Wall Street--not main street...

Leland Thomas Faegre

The Bernanke Fantasy...

Consider the source. Inflation will follow but deflation is nigh...

www.elliottwave.com

Leland Thomas Faegre

Good find.

Thank you; saved it.