[lbo-talk] loving deflation

[Doug Henwood]

The other day I said that only right-wing nuts love deflation, and we  
should leave it to them. Today's daily commentary from The Mises  
Institute confirms this. The lead of Mark Thornton's piece:


> Fed Chairman Ben Bernanke, like most mainstream economists, has an  
> irrational fear of deflation — whether it is understood as falling  
> prices or a contracting money supply. I have coined the term  
> "apoplithorismosphobia" for this psychological malady. In contrast,  
> average Americans love deflation whether it's at Wal-Mart, in the  
> Cash for Clunkers program, or from the tax credit for first time  
> home buyers. Austrian economists love most forms of deflation too,  
> and we think it is the ultimate cure for economic crises.

Hey, if you like 1929-32, you'll embrace this "ultimate cure"!

Full text is at:

<http://mises.org/story/3625>