>what is the right way to fight deflation? wouldn't US "repression of
>demand" (slowdown or recession) have the potential of making world
>deflation worse?
Well, sure, if at the same time you're pushing capacity expansion and Joan Robinson's new mercantilism. If the U.S. is suppressing domestic demand, which means damping down imports, and encouraging exports, then who's going to buy all that Asian stuff to keep their current a/c's in the black?
Writing & talking about political economy was pretty boring for a long while; it's not anymore.
Doug