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The spectre of deflation: a review of empirical evidence

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  • Gregor W. Smith

Abstract

What explains the widespread fear of deflation? This article reviews the history of thought, economic history, and empirical evidence on deflation, with a view to answering this question. It also outlines informally the main effects of deflation in applied monetary models. The main finding is that - for both historical and contemporary deflations - there are many open, empirical questions that could be answered using the tools economists use to study inflation and monetary policy more generally.

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Bibliographic Info

Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 39 (2006)
Issue (Month): 4 (November)
Pages: 1041-1072

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Handle: RePEc:cje:issued:v:39:y:2006:i:4:p:1041-1072

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Citations

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Cited by:
  1. Nicolas Canry & Julien Fouquau & Sebastien Lechevalier, 2011. "Sectoral Price Dynamics in Japan: A Threshold Approach," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00945036, HAL.
  2. Clinton, Kevin & Garcia-Saltos, Roberto & Johnson, Marianne & Kamenik, Ondrej & Laxton, Douglas, 2010. "International deflation risks under alternative macroeconomic policies," Journal of the Japanese and International Economies, Elsevier, vol. 24(2), pages 140-177, June.
  3. Bill Dorval & Gregor W. Smith, 2013. "Interwar Deflation and Depression," Working Papers 1310, Queen's University, Department of Economics.
  4. James Yetman, 2009. "Hong Kong Consumer Prices are Flexible," Working Papers 052009, Hong Kong Institute for Monetary Research.

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