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WP 2009-8 What is Driving Global Deflation and How Best to Fight It?

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    Abstract

    The massive US stimulus that has just been enacted is liable to raise questions sooner or later about the viability of the dollar in financial markets. It is true that no currency today – or, in the foreseeable future - seems capable of providing a safer alternative to the dollar, but that should not be a cause for complacency. A panicky rush into gold out of the dollar is always possible, and that can turn the current slump into a great depression worse than the last.

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    File URL: http://www.economicpolicyresearch.org/scepa/publications/workingpapers/2009/SCEPA_Working_Paper_2009-8.pdf
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    Bibliographic Info

    Paper provided by Schwartz Center for Economic Policy Analysis (SCEPA), The New School in its series SCEPA working paper series. SCEPA's main areas of research are macroeconomic policy, inequality and poverty, and globalization. with number 2009-8.

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    Length: 15 pages
    Date of creation: Mar 2009
    Date of revision:
    Handle: RePEc:epa:cepawp:2009-8

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    Keywords: financial markets; economic crisis; stimulus;

    This paper has been announced in the following NEP Reports:

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