Deflation by Chris Farrell

by Chris Farrell

"Deflation is one of the most feared terms in economics. It immediately conjures visions of abandoned farms and idle factories, and streams of unemployed workers standing in breadlines. In this important new book, Chris Farrell explains that deflation need not presage a collapse. In the process he provides new ways of looking at our economic and financial futures. More than an introduction to the subject, Farrell points out that deflation has always been a fundamental aspect of the business cycle. As they did in 19th-century America, deflation and fast economic growth can coexist. However, the impact on business, consumers, investors, policymakers and you is the subject of this incisive volume."

Genres: Economics, Nonfiction

Mass Market Paperback

First published May 1, 2004

Reviews

[Tim Shores · Rating 3 out of 5]

Not bad. Published in 2003, and focused on the aftermath of .com. Provides a decent non-technical illustration of the monetary policy cause and effect of modern economic peaks and valleys. Hindsight tells us that Farrell's opinion of real estate growth and the derivatives market -- that it they are a good bet, that they are signs of healthful innovation in an epoch of falling prices -- bombs along with everyone else's expectations in 2007. but he has little to say about the effect of a credit contraction on the money supply, and therefore on the possibility of deflationary spiral. this technical matter is of constant argument between inflationists and deflationists, especially in these times. i'd expect Farrell to have written more on this since, but I haven't looked it up. this book is a worthwhile read, both because it's a lesson in a can about deflation, and because it belongs to a historical herd of financial thought rumbling toward the edge of a cliff.

[Aminul Haque · Rating 3 out of 5]

An average book on the topic of deflation. I wish there were less heuristics and anecdotes and more quantitative analysis. In a world of prolonged quantitative easing, an adequacy of the money supply does not seem to be a problem. I looked for an answer to one question, which is - what would diminish the supply of money and create a condition for deflation? Still looking for that answer.

[Glenn Murphy · Rating 4 out of 5]

A very interesting read. Like most people of the last couple of generations, I was more or less ignorant of how prevalent deflation has been in the history of the U.S. economy. This book gives a very good history of deflation along with a very good overview of how improvements in technology are often linked to deflation and labor displacements. I wish I shared Farrell's belief that all we need to do is spend more money on education and training we can offset the losses of good jobs to offshoring.

[Frank · Rating 4 out of 5]

Inspires one to really start thinking hard about what prices represent...especially when our consumption factor is about 32X greater than, say, your average African's.

[Derek Barnes · Rating 3 out of 5]

An argument for not being too scared of mild deflation. Looking forward to reading more on the subject.

[Ed Fish · Rating 3 out of 5]

This book takes a long term look at economic trends and when read in conjunction with the Demographic Cliff you might wonder where it is all going.

[John · Rating 2 out of 5]

A discussion of what deflation is and a brief history of the same. Interesting and worth the read.