Quarterly Journal of Austrian Economics
Deflation Teaser? Klondike Bars and the Golden 90s in Canada
Volume 6, No. 4 (Winter 2003)
In an age when deflation is widely feared and the threat of deflation serves as a justification for radical policy proposals, Bordo and Redish have done a great service in showing that deflation is not harmful to the economy, at least on the gold standard. However, they find an anomaly—a teaser—in Canada during the latter stage of the classical gold standard where positive monetary shocks led to positive shocks of increased economic output. The Klondike gold rush is offered here as the explanation for Bordo and Redish’s“surprising result.” All of the other factors (i.e., significant increases in land, labor,and capital) were no doubt important contributors to higher rates of economic
Cite This Article
Thornton, Mark. "Deflation Teaser? Klondike Bars and the Golden 90s in Canada." The Quarterly Journal of Austrian Economics 6, No. 4 (Winter 2003): 111–116.