Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/169321
Authors: 
Eichengreen, Barry
Park, Donghyun
Shin, Kwanho
Year of Publication: 
2016
Series/Report no.: 
ADB Economics Working Paper Series 490
Abstract: 
Deflation has emerged as a new concern for Asian policy makers. The traditional view is that deflation can lead to a vicious cycle of falling demand and prices, and is thus a dangerous condition. However, another school of thought emphasizes the role of positive supply shocks and takes a more benign view of deflation. In a recent paper that examines the relationship between deflation and economic growth, using consumer prices time series, Borio et al. (2015) find some evidence that casts doubt on the traditional view. In this paper, we revisit the relationship and find some grounds for concern about the harmful effect of deflation on growth.
Subjects: 
deflation
growth
producer prices
JEL: 
E31
Creative Commons License: 
http://creativecommons.org/licenses/by/3.0/igo/
Document Type: 
Working Paper

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