Replies

There is one way and only one way to bring on deflation and that would be to flood the market with supply, particularly energy supply but also food supply.

No. Negative M2 is the surest way to bring on deflation. Think Great Depression when the FED let the money supply drop by a third.

7 posted on 03/13/2023 3:34:18 PM PDT by frogjerk (More people have died trusting the government than not trusting the government.)

right, hasn’t the money supply technically fallen year/over-year (even if it’s just by a small amount)?

12 posted on 03/13/2023 4:33:54 PM PDT by millenial4freedom (The Democrat Party thinks men can menstruate! How can it possibly be right about everything else?)

"There is one way and only one way to bring on deflation and that would be to flood the market with supply, particularly energy supply but also food supply."
No. Negative M2 is the surest way to bring on deflation. Think Great Depression when the FED let the money supply drop by a third.

I was thinking more along the lines of the deflation in the late 1800s, spurred on by the massive increase in supply of goods through manufacturing, along with the increase in farm output and discoveries of oil in TX and OK. The whole issue of printing silver-backed dollars that made William Jennings Bryan so famous was to increase the money supply and stop the deflation.

The 1930 method is more like the operation being successful and the patient dying.

14 posted on 03/13/2023 6:58:05 PM PDT by chajin ("There is no other name under heaven given among people by which we must be saved." Acts 4:12)

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