Deflation and Depression: Is There an Empirical Link?

Andrew Atkeson; Patrick J. Kehoe

doi:10.1257/0002828041301588

American Economic Review Vol. 94 No. 2 2004

Deflation and Depression: Is There an Empirical Link?

Andrew Atkeson¹; Patrick J. Kehoe²

¹ Department of Economics, Bunche Hall 9381, University of California-Los Angeles, Los Angeles, CA 90095-1477, Federal Reserve Bank of Minneapolis. · ² Research Department, Federal Reserve Bank of Minneapolis, 90 Hennepin Avenue, Minneapolis, MN 55401-2171, and University of Minnesota.

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.

DOI: 10.1257/0002828041301588
Volume: 94
Issue: 2
Pages: 99-103
Language: en
Sources: crossref bibtex:phds-export.bib openalex

Deflation and Depression: Is There an Empirical Link?

Abstract

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