May 2, 2019

Is Deflation Good Or Bad?

Between 1800 and 1900 the U.S Consumer Prices Index (CPI) fell by 50 percent. So we had 100 years of "deflation." This includes the gilded age, the strongest period of economic growth in U.S. history. If falling consumer prices were good then, why does the Federal Reserve think they would be such a problem now?

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