[lbo-talk] Deflation as a solution to financial crisis

[JOANNA A.]

I just read Mark Blyth's "Austerity." In there he says there are four ways to solve a financial crisis: 

inflation, devaluation, default, and deflation. 

I get how the first three work. But I don't get how deflation works. I mean, that just makes debt more burdensome. 

??? 

Joanna