IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-1-349-14991-9_18.html
   My bibliography  Save this book chapter

Asset Deflation and Financial Fragility

In: Uncertainty, International Money, Employment and Theory

Author

Listed:
  • Louise Davidson

Abstract

The purpose of this paper is quite modest. The theoretical argument starts by accepting Keynes’s fundamental axiom that money is never neutral in an entrepreneurial economy.1 It is then possible to trace out why, if all prices are flexible, falling prices and especially an asset price deflation can have a devastating impact on the financial system and permanently lower employment and real economic growth. (If, on the other hand, money was neutral, then falling prices would be the process through which the economic system either maintains or restores full employment prosperity.)

Suggested Citation

  • Louise Davidson, 1999. "Asset Deflation and Financial Fragility," Palgrave Macmillan Books, in: Louise Davidson (ed.), Uncertainty, International Money, Employment and Theory, chapter 18, pages 232-245, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-1-349-14991-9_18
    DOI: 10.1007/978-1-349-14991-9_18
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below 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.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Eric Tymoigne, 2006. "Asset Prices, Financial Fragility, and Central Banking," Economics Working Paper Archive wp_456, Levy Economics Institute.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-1-349-14991-9_18. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.