October 8, 2012

Garett Jones on Fisher, Debt, and Deflation

  • Russell Roberts

    Affiliated Senior Scholar
00:00
 
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Garett Jones of George Mason University talks with EconTalk host Russ Roberts about the ideas of Irving Fisher on debt and deflation. In a book, Booms and Depressionsand in a 1933 Econometrica article, Fisher argued that debt-fueled investment booms lead to liquidation of assets at unexpectedly low prices followed by a contraction in the money supply which leads to deflation and a contraction in the real side of the economy--a recession or a depression.