The anti deflation bias
Bibliographic Data
| ID | 21281964 |
|---|---|
| Authors | Philipp Bagus (0000-0002-8233-6629, Universidad Rey Juan Carlos, corresponding author) |
| Year | 2020 |
| Volume | 70 |
| Issue | 2 |
| Pages | 147-161 |
| Publication date | 2020-06-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Acta Oeconomica (JOURNAL) |
| Journal identifiers | ISSN: 0001-6373 • E-ISSN: 1588-2659 |
| Publisher | Akademiai Kiado Zrt. (PUBLISHER • HU) |
| DOI | 10.1556/032.2020.00008 |
| OpenAlex | W3044766815 |
| Language | EN |
| References cited | 13 |
Deflation is widely feared and opposed. This paper provides arguments to explain the anti-deflationary bias. It is argued that governments favour inflation, that the main deflation theories have influenced negatively the public opinion on deflation, and that rent-seeking behaviour and group formation explains why the opposition to deflationary redistribution is stronger than the opposition to inflationary redistribution. Moreover, psychological concepts, such as anchoring, the endowment effect or the availability heuristic have contributed to the fear of deflation by causing a money illusion and a equalisation of deflation and recession
Deflation · Economics · Keynesian economics · Monetary economics · Monetary policy · Opposition (politics) · Political science · Redistribution (election) · Banking stability, regulation, efficiency · Economic, financial, and policy analysis · Law · Monetary Policy and Economic Impact
The Intellectuals and Socialism
Rules, discretion and reputation in a model of monetary policy
The Debt-Deflation Theory of Great Depressions
Loss Aversion in Riskless Choice
Judgment under Uncertainty
Prospect Theory
Toward a positive theory of consumer choice
The Logic of Collective Action
Rules Rather than Discretion
A Positive Theory of Monetary Policy in a Natural Rate Model
Availability
Escaping from a Liquidity Trap and Deflation
| Citation velocity | historical |
|---|---|
| Highly cited | No |