Debt deflation is a theory that recessions and depressions are due to the overall level of debt rising in real value because of deflation, causing people...

economy because it increases the real value of debt, especially if the deflation is unexpected. Deflation may also aggravate recessions and lead to a deflationary...

earliest American neoclassical economists, though his later work on debt deflation has been embraced by the post-Keynesian school. Joseph Schumpeter described...

depression. Fisher's debt-deflation theory initially lacked mainstream influence because of the counter-argument that debt-deflation represented no more...

of outstanding debt. Moreover, the continued deleveraging of outstanding debts increases the rate of deflation. Thus, debt and deflation act on and react...

corrected, deflation and a credit crunch followed. Deflation effectively made debt more expensive and, as Fisher explained, this reinforced deflation again...

Related explanations highlight the role of debt deflation, in which falling prices increased the real burden of debt on households and businesses. In addition...

occur in 2008. Debt deflation is a theory of economic cycles which holds that recessions and depressions are due to the overall level of debt shrinking (deflating)...

bubbles do when they burst," though theories of financial crises such as debt deflation and the Financial Instability Hypothesis suggest instead that bubbles...

Monetary Fund working paper WP/12/202; accessed November 6, 2016. "Debt-Deflation versus the Liquidity Trap: the Dilemma of Nonconventional Monetary Policy"...

The term is attributed to economist Richard Koo and is related to the debt deflation concept described by economist Irving Fisher. Recent examples include...

fixed interest rate, so the debt to GDP ratio increased as a consequence of the decrease in nominal GDP growth due to deflation. The growth of annual revenue...

Keynesian economics, as well as Monetarist economics and in the theory of debt deflation. Inflationism is not accepted within the economics community, and is...

business cycle has been banished [and] debts can be taken on ... But in truth neither the boom, nor the debt deflation ... and certainly not a recovery can...

amplify the movement—inflation feeds upon inflation and debt-deflation feeds upon debt deflation." In other words, people are momentum investors by nature...

theory of money (also called debt theory of money), concerning the relationship between credit and money. Debt deflation and balance-sheet theories, which...

the debt deflation theory of economic crises, being called "the paradox of debt" – people save not to increase savings, but rather to pay down debt. As...

of deflation. This significantly reduced income and GDP, resulting in a severe recession, decline in tax receipts and a significant rise in the debt-to-GDP...

depressions are caused by an overall rise in the real debt level thanks to deflation. As a result, debt liquidation occurs followed by distress selling and...

levels of household debt accumulated in the decades preceding the crisis resulted in a balance sheet recession (similar to debt deflation) once housing prices...

collateralized debt obligation (CDO), which were assigned safe ratings by the credit rating agencies. Low interest rates – Fears of deflation, the bursting...

full-reserve banking. Irving Fisher's "The Debt-Deflation Theory of Great Depressions" (1933) analyzed how debt cycles contributed to economic instability...

amplify the movement – inflation feeds upon inflation and debt-deflation feeds upon debt-deflation." In other words, people are momentum investors by nature...

economics, consumer debt is the amount owed by consumers (as opposed to amounts owed by businesses or governments). It includes debts incurred on purchase...

on the relationship between economics and economic history in his "Debt-Deflation Theory of Great Depressions": The study of dis-equilibrium may proceed...

(yields). Post-Keynesian economist Hyman Minsky posited that "after a debt deflation that induces a deep depression, an increase in the money supply with...

levels of household debt accumulated in the decades preceding the crisis resulted in a balance sheet recession (similar to debt deflation) once housing prices...

severity of the contractions which followed it could be explained by debt and deflation and that a financial panic would trigger catastrophic deleveraging...

intimately tied to, the debt-deflation theory of Irving Fisher, and the notion of a credit bubble (credit being the flip side of debt), and has been elaborated...

American economist Irving Fisher developed the theory of debt deflation. He explained that deflation causes a decline in profits and asset prices, and a still...