Some Thoughts on Price Deflation
New Perspectives on Political Economy, Vol. 2, No. 1, pp. 1-12, 2006
12 Pages Posted: 8 Jul 2011
Date Written: July 6, 2011
Price deflation has long been a bugaboo of economics; cordially hated, reviled and feared by practically everyone. There is some justice in these sentiments when the price deflation comes about as a result of government action. However, there is no warrant for them when they stem from the freely made economic decisions of the masses of economic actors. Then, price deflation is not only not problematic, it is a positive virtue.
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