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Deflation and Depression: Is There and Empirical Link?

Andrew Atkeson
University of California, Los Angeles - Department of Economics; National Bureau of Economic Research (NBER)

Patrick J. Kehoe
Federal Reserve Bank of Minneapolis - Research Department; University of Minnesota - Twin Cities - Department of Economics; National Bureau of Economic Research (NBER)


February 1, 1991

NBER Working Paper No. W10268

Abstract:     
Are deflation and depression empirically linked? No, concludes a broad historical study of inflation and real output growth rates. Deflation and depression do seem to have been linked during the 1930s. But in the rest of the data for 17 countries and more than 100 years, there is virtually no evidence of such a link.

JEL Classifications: E5, E52, E58, E6, E65, E42, E3, E31

Working Paper Series

Date posted: August 21, 2007 ; Last revised: August 21, 2007

Suggested Citation

Atkeson, Andrew G. and Kehoe, Patrick J., Deflation and Depression: Is There and Empirical Link? (February 1, 1991). NBER Working Paper No. W10268. Available at SSRN: http://ssrn.com/abstract=495773


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Contact Information

Andrew G. Atkeson (Contact Author)
University of California, Los Angeles - Department of Economics ( email )
Box 951477
Los Angeles, CA 90095-1477
United States
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Patrick J. Kehoe
Federal Reserve Bank of Minneapolis - Research Department ( email )
90 Hennepin Avenue
Minneapolis, MN 55480
United States
612-204-5525 (Phone)
612-204-5515 (Fax)
University of Minnesota - Twin Cities - Department of Economics ( email )
271 19th Avenue South
Minneapolis, MN 55455
United States
National Bureau of Economic Research (NBER) ( email )
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
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