In Defense of Deflation

  • Philipp Bagus

Part of the Financial and Monetary Policy Studies book series (FMPS, volume 41)

Table of contents

  1. Front Matter
    Pages i-xvii
  2. Philipp Bagus
    Pages 1-4
  3. Philipp Bagus
    Pages 5-33
  4. Philipp Bagus
    Pages 35-83
  5. Philipp Bagus
    Pages 85-117
  6. Philipp Bagus
    Pages 119-189
  7. Philipp Bagus
    Pages 191-195
  8. Back Matter
    Pages 197-215

About this book


This book analyses the causes and consequences of deflation. In contrast to the widespread believe that deflation would be harmful to the economy as a whole, the author argues that free market deflation is liberating and beneficial. Several myths of deflation are exposed and the reasons for the widespread deflation phobia that serves to justify expansionary monetary policy, i.e., inflation are investigated. Two historical case studies, the growth deflation in the US after the Civil War and the bank credit deflation in Germany during the Great Depression are discussed to illustrate the points made in the theoretical analysis of deflation.


Bank Credit Deflation Deflation Falling Prices Great Depression Monetary Policy

Authors and affiliations

  • Philipp Bagus
    • 1
  1. 1.Economia Aplicada IUniversidad Rey Juan CarlosMadridSpain

Bibliographic information

  • DOI
  • Copyright Information Springer International Publishing Switzerland 2015
  • Publisher Name Springer, Cham
  • eBook Packages Business and Economics
  • Print ISBN 978-3-319-13427-7
  • Online ISBN 978-3-319-13428-4
  • Series Print ISSN 0921-8580
  • Series Online ISSN 2197-1889
  • Buy this book on publisher's site
Industry Sectors
Finance, Business & Banking