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...

come 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)...

Great Depression. Related to this explanation are those who point to debt deflation causing those who borrow to owe ever more in real terms. There are also...

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

not leaving them funds to buy goods and services, thus leading to debt deflation. Hudson notes that the existing economic theory, the Chicago School...

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

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

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

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

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

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

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...

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...

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...

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

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...

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

increase rapidly in nominal terms; if debt is nominal, then its ratio to GDP will decrease rapidly. A period of deflation would have the opposite effect.[citation...

nominal debt plays: since the nominal amount of debt is not in general linked to inflation, inflation erodes the real value of nominal debt, and deflation increases...

(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...

of acceleration go back to Fisher (1933). In his seminal work on debt and deflation, which tries to explain the underpinnings of the Great Depression...

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...

adjustment could worsen matters, causing what Irving Fisher called "debt deflation". Not all economists accept these theories. They attribute what appears...

center of the business cycle. A primary theory in this vein is the debt deflation theory of Irving Fisher, which he proposed to explain the Great Depression...

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

have serious macro-economic consequences, such as triggering Fisherian debt deflation and slowing GDP growth. In the financial sector, the need to deleverage...