Wednesday, 12 June 2013
George Selgin's talk "Could deflation be salvation"
From the Adam Smith Institute comes this video of a talk given by Professor George Selgin on the possibility that some deflation—that coming from improvements in the supply side, productivity improvements—is not harmful to the economy, but good. He makes the case that the so-called Long Depression of 1873-1896 was actually the site of a vast improvements in living standards and social welfare. And he points out that the problems attendant with deflation, that economists are fond of pointing out, only obtain when that deflation comes from a demand shock, not a change in supply.