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Monetary Theory
Vijay Boyapati

The Politics of Deflation

Mises Daily

Author: Vijay Boyapati

Online Publish Date: January 19, 2011

Category: Monetary Theory, The Fed

[ Libertarian Papers 2010] The reason that political establishments have always been biased against monetary deflation [1] can be found in the manner in which wealth transfer occurs under inflationary and deflationary environments. During an inflationary credit expansion, wealth is transferred from the public in general to the earliest recipients

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