Previous post Next post

Adam Smith Institute: Could Deflation Be Salvation?

Imagine wages and factor prices are stable.  Hence deflation means productivity growth: Higher quantities bought for a lower price. Low inflation or even deflation is the Swiss success story for decades and the success story for the United States recently. The Pigou effect seems to be saving the US economy, just as it did in the 1980s.

Just avoid wage deflation and therefore a deflationary spiral and you are fine.

Highly Recommended: Adam Smith Institute

 

 

 

Are you the author?
George Dorgan
George Dorgan (penname) predicted the end of the EUR/CHF peg at the CFA Society and at many occasions on SeekingAlpha.com and on this blog. Several Swiss and international financial advisors support the site. These firms aim to deliver independent advice from the often misleading mainstream of banks and asset managers. George is FinTech entrepreneur, financial author and alternative economist. He speak seven languages fluently.
Previous post See more for Recommended Next post
Tags:

Permanent link to this article: https://snbchf.com/2013/06/adam-smith-institute-deflation-salvation/

Leave a Reply

Your email address will not be published.

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

This site uses Akismet to reduce spam. Learn how your comment data is processed.