Jul 30, 2019

Irving Fisher on reflation as preventing depression

38. [I]t is always economically possible to stop or prevent such a depression simply by reflating the price level up to the average level at which outstanding debts were contracted by existing debtors and assumed by existing creditors, and then maintaining that level unchanged.

~ Irving Fisher, "The Debt-Deflation Theory of Great Depressions," September 1933

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