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The Spectre of Deflation: A Review of Empirical Evidence

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  • Gregor W. Smith

    ()
    (Queen's University)

Abstract

What explains the widespread fear of deflation? This paper 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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File URL: http://qed.econ.queensu.ca/working_papers/papers/qed_wp_1086.pdf
File Function: First version 2006
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Bibliographic Info

Paper provided by Queen's University, Department of Economics in its series Working Papers with number 1086.

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Length: 57 pages
Date of creation: Jul 2006
Date of revision:
Handle: RePEc:qed:wpaper:1086

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Keywords: deflation;

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Citations

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Cited by:
  1. James Yetman, 2009. "Hong Kong Consumer Prices are Flexible," Working Papers 052009, Hong Kong Institute for Monetary Research.
  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. 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.
  4. Bill Dorval & Gregor W. Smith, 2013. "Interwar Deflation and Depression," Working Papers 1310, Queen's University, Department of Economics.

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