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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: ForYourEyesOnly who wrote (60393)	5/23/1999 12:25:00 PM
From: Mike M2	Read Replies (1) \| Respond to of 132070

THC, Austrian economist F. A. Hayek wrote in 1933. " there is no reason to assume that the crisis was started by a deliberate deflationary action on the part of the monetary authorities, or that deflation itself is anything but a secondary phenomenon, a process induced by the maladjustments of industry left over from the boom. " The major depressions have been the result of the liquidation of large private debts. Public debt can be monetized private debt cannot. For an excellent summary of the case for deflation read Jim Davidson's " The Great Reckoning" Ch 11 -14 Davidson says deflation is delayed compensation for inflation. He also makes the case that the hyperinflation road is more damaging than deflation in countries with highly developed financial markets. mike