Debt, Innovations, and Deflation: The Theories of Veblen, Fisher, Schumpeter, and MinskyAnalyzes the deflation theories of Thorstein Veblen, Irving Fisher, Joseph A Schumpeter, and Hyman Minsky. In so doing, this work develops a paradigm for understanding the phenomenon of deflation. It also provides a re-examination of the literature and th |
Contents
| 1 | |
STATEMENT OF PURPOSE | 4 |
OVERVIEW OF CHAPTERS | 8 |
How Deflation Became a Monetary Policy Issue | 12 |
CONTROLLING WORLD WAR II INFLATION | 13 |
POSTWAR PENTUP DEMAND INFLATION GIVES WAY TO MILD DEFLATION | 15 |
19501952 | 16 |
VIET NAM WAR INFLATION | 17 |
FISHER ON DEBT AND STOCK PRICES IN THE 1920S | 90 |
FISHERS DEBTDEFLATION THEORY OF DEPRESSIONS | 96 |
THE GREAT DEPRESSION | 101 |
REMEDIES | 103 |
THE DEBTDEFLATION THEORY AND FISHERS EARLIER WRITINGS | 105 |
RECENT INTERPRETATIONS AND MODIFICATIONS OF FISHERS THEORY | 106 |
Innovations Debt and Deflation in Schumpeters Theory | 107 |
DEBT INNOVATIONS AND DEFLATION IN SCHUMPETERS BUSINESS CYCLES | 108 |
GREENSPANS PREEMPTIVE STRIKES AGAINST INCIPIENT INFLATION | 18 |
MONETARY POLICY AND THE NEW ECONOMY | 19 |
THE EMERGENCE OF DEFLATIONARY CONCERNS | 20 |
DEFLATION DISAPPEARS IN 2004 | 32 |
SUMMARY OF DEFLATION CONCERNS | 33 |
Monetary Theories of Deflation | 38 |
THE QUANTITY THEORY OF MONEY | 39 |
SMITH AND MILL | 43 |
MONETARY THEORIES OF BUSINESS CYCLES | 51 |
Debt Innovations and Deflation in Veblens Theory | 55 |
THEORY OF DEBT DEFLATION AND CHRONIC DEPRESSION | 60 |
REMEDIES FOR CHRONIC DEPRESSION | 70 |
HISTORICAL SETTING OF VEBLENS CREDITINFLATION THEORY | 74 |
CREDITINFLATION AND FINANCIAL STABILITY IN THE NEW ORDER | 77 |
Fishers DebtDeflation Theory of Great Depressions | 83 |
FROM PROSPERITY TO CRISIS AND DEPRESSION | 84 |
INVALIDATED AND REVALIDATED | 85 |
SCHUMPETERS AND VEBLENS THEORIES | 112 |
SCHUMPETER ON FISHERS DEBTDEFLATION THEORY | 115 |
SCHUMPETERS ANALYSES OF DEBT AND DEPRESSION | 117 |
PREVENTION AND REMEDIES | 121 |
FOCUS ON INFLATION IN LATER WORKS | 125 |
Minskys Financial Instability Hypothesis and DebtDeflation | 136 |
THEORETICAL TIES WITH OTHER ECONOMISTS | 137 |
THE POSTWORLD WAR II ECONOMY | 139 |
MINSKYS FINANCIAL INSTABILITY HYPOTHESIS | 142 |
THE EVOLUTION OF BIG GOVERNMENT | 155 |
A MINSKIAN MODIFICATION OF FISHERS DEBTDEFLATION THEORY | 157 |
Deflation Theories and Recent Deflation Concerns | 159 |
COMPARATIVE SUMMATION OF THE DEFLATION THEORIES | 160 |
INSIGHTS INTO RECENT CONCERNS ABOUT DEFLATION | 172 |
| 179 | |
| 185 | |
Common terms and phrases
Absentee Ownership aggregate demand aggregate supply analyses bankers Bernanke borrowing business cycles Business Enterprise businessmen capital assets changes chronic depression commodities competitive consumer costs credit-inflation crisis deflation theories deflationary forces demand price depression developments disinflation economists effects employment entrepreneurs expansion expectations explained factor falling prices federal funds rate Federal Reserve Board financial crises financial innovations financial instability hypothesis financial markets financial system firms fiscal policies Fisher Fisher's debt-deflation theory gold Greenspan ibid implemented income increase inflation inflationary pressures investment spending Keynes labor large corporations liquidity loans lower Minsky Minsky's financial instability modern monetary policy money supply nominal nominal interest rates noted occur output percent period post-World price level prices of capital production profits quantity theory recession reduced result role Schumpeter Schumpeter argued Schumpeter's theory secondary wave speculative prosperity stock market bubble stock market crash stock prices supply price Theory of Business U.S. economy Veblen Veblen's theory wages