In Defense of Deflation

The analysis delves into the causes and effects of deflation, challenging the notion that it is universally detrimental. The author posits that free market deflation can be liberating and beneficial, debunking common myths surrounding the issue. It explores the societal fears that fuel support for inflationary policies. Historical case studies, including the post-Civil War growth deflation in the US and the bank credit deflation in Germany during the Great Depression, provide concrete examples to support the theoretical arguments presented.