Fears of Deflation and Policy Responses then and Now

74 Pages Posted: 29 Jan 2003

See all articles by Richard C. K. Burdekin

Richard C. K. Burdekin

Claremont McKenna College - Robert Day School

Pierre L. Siklos

Wilfrid Laurier University - School of Business & Economics; Balsillie school of international affairs ; Australian National University (ANU) - Centre for Applied Macroeconomic Analysis (CAMA)

Date Written: December 2002

Abstract

For the first time since the 1930s, deflation in both goods and asset prices poses as much, or more, of a threat than does inflation. In this paper we explore public and policy maker perceptions and reactions to deflation covering the period from the late 19th century until the present. We also consider the effectiveness of, and rationale for, policy initiatives aimed at combating deflation. We include an analysis of the views of economists and the financial press, primarily in North America and the United Kingdom, during the deflationary period prior to World War II. We also compare the experience of the Great Crash of 1929 with the recent cases of deflation in both asset prices and consumer prices in China and Japan.

Keywords: Deflation, goods prices, asset prices, expectations

JEL Classification: B1, B3, E32, E42, E52

Suggested Citation

Burdekin, Richard C. K. and Siklos, Pierre L., Fears of Deflation and Policy Responses then and Now (December 2002). Available at SSRN: https://ssrn.com/abstract=364121 or http://dx.doi.org/10.2139/ssrn.364121

Richard C. K. Burdekin (Contact Author)

Claremont McKenna College - Robert Day School ( email )

500 E. Ninth St.
Claremont, CA 91711-6400
United States
909-607-2884 (Phone)
909-621-8249 (Fax)

HOME PAGE: http://www.cmc.edu/rdschool

Pierre L. Siklos

Wilfrid Laurier University - School of Business & Economics ( email )

Department of Economics
75 University Avenue W.
Waterloo, Ontario N2L 3C5
Canada
519-884-0710 Ext.. 3491 (Phone)

HOME PAGE: http://pierrelsiklos.com

Balsillie school of international affairs ( email )

67 Erb Street West
Waterloo, ON N2L 6C2
Canada

Australian National University (ANU) - Centre for Applied Macroeconomic Analysis (CAMA) ( email )

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
391
Abstract Views
2,314
Rank
138,669
PlumX Metrics