Does price deflation cause recession? Though deflation has become a matter of concern for the Federal Reserve, recent studies suggest that the historical and causal record is mixed. In this article, the authors use historical data for the output and price level of the United States of America, and find that a simple Granger causality approach confirms the doubts about the effect. A closer look, however, shows that while deflation alone may not cause recession, but when combined with recession, it may cause lower subsequent growth. Although interaction can lead to a downward spiral of output and prices, the authors find that they dissipate with time.
Download Info
To our knowledge, this item is not available for
download. To find whether it is available, there are three
options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page
whether it is in fact available.
3. Perform a search for a similarly titled item that would be
available.
Volume (Year): IV (2006) Issue (Month): 1 (February) Pages: 37 - 49 Download reference. The following formats are available: HTML
(with abstract),
plain text
(with abstract),
BibTeX,
RIS (EndNote, RefMan, ProCite),
ReDIF
Handle: RePEc:icf:icfjmo:v:04:y:2006:i:1:p:37-49
Contact details of provider:
For technical questions regarding this item, or to correct its listing, contact: (Y G Sivaram).