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Economic Theories of Deflation

In: In Defense of Deflation

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  • Philipp Bagus

    (Universidad Rey Juan Carlos)

Abstract

Many economists have written about deflation or touched upon the subject in passing while focusing on their development of related monetary theories. My aim in this chapter is not to comment on every reference concerning the subject of falling prices. This endeavor would be virtually impossible. Rather, I provide an overview of the main currents and changes in economic theories of deflation. This overview aids in explaining how and when theories of deflation in economic thought were formed and why views on deflation have changed. To explain why certain theories of deflation and deflation phobia have emerged, I place special emphasis on the circumstances and backgrounds of these deflation theorists. My exposition of the theories of deflation proceeds mainly in chronological order; however, at times I will group theorists with similar views together, though they may not be contemporaries of each other.

Suggested Citation

  • Philipp Bagus, 2015. "Economic Theories of Deflation," Financial and Monetary Policy Studies, in: In Defense of Deflation, edition 127, chapter 0, pages 5-33, Springer.
    • Handle: RePEc:spr:fimchp:978-3-319-13428-4_2
    DOI: 10.1007/978-3-319-13428-4_2
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    Cited by:

    1. Ziad R. Alshaik, 2018. "Can Entrepreneurship Be Measured?," International Review of Management and Marketing, Econjournals, vol. 8(1), pages 9-12.

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