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Which one of the following views do you think is the correct one? 1) bernanke printed a lot of money, there was low price inflation, but there would have been huge price deflation if he had not printed. The money printing prevented deflation. 2) bernanke printed a lot of money, and this did cause big...
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lol, deflation certainly can be a very bad thing for certain interest groups - i.e. homeowners. It also could be bad if the government decides, much like if they decided to inflate the currency, to deflate it - but you can basically bank on that never happening. Steady, small amount of deflation from...
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Mish Shedlock sure seems to think so . If he's right, and we're in the begining stages of a deflationary depression a la Japan, does that change the thesis for Gold as an investment?
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Hello - I emailed the Mises Institute, and then Dr. Woods. Dr Woods referred me to your forum. Here is my situation. I am editing online content for high schoolers. When I am done, the content will be reused hundreds, even thousands of times. I have been assigned an American History course. One of the...
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Whenever discussing the Great Depression, it is always argued that high interest rates imposed during the Great Depression (Specifically 1931) worsened the Depression because investment was curtailed. This of course seems to run contrary with what an Austrian would argue. There was obviously credit inflation...
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Now I understand of course supply and demand, and that as an economy is more productive prices decrease. However, will not other prices have to increase as well if the money supply is constant? When talking about rising prices, the argument is that prices cannot all rise (thus causing a net increase...
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Back in December Jeff Tucker posted a video on LvMI blog here ... In it, Tim Terrell talks about instances of hyperinflation throughout history. He references Joe Salerno's work on the confiscatory deflation of Argentina in the late 1990s, and he said something that didn't make sense to me. So...
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Hey Mises Community members, I'm back with another question. I've been trying to figure out why we have a fiat currency system. There is a ton of information on the 'net about the DISadvantages of fiat currency, but few resources that address its advantages. The best I've found so far...
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Deflation has exactly the same harmful, economy-distorting effects inflation does, except in reverse. Every single reason you could cite for inflation being bad has a matching reason why deflation is. (a) For example, inflation does not happen evenly. You don't simply get paid more exactly the same...
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To increase my understanding of Austrian economics I wanted to compare the views of the inflationists and the deflationists. Some propose that the most likely scenario to happen in the (near) future is high- or hyperinflation while others argue that deflation might occur. Deflation: Bank assets decline...