Economics 201:  Inflation, Disinflation, Deflation

Link to slides

Class Notes on the Phillips Curve

Read:

• • Deflation creates three problems.  Krugman (New York Times, August 3, 2010)

  • Deflation is BAD!  And weird, from a Phillips Curve standpoint.   Krugman (New York Times, July 26, 2010)

Milton Friedman

• • Friedman's "Free Markets and the End of History" NPQ 2006

  • Friedman on video:  Free to Choose, Limited Government, YouTube

Data

• High levels of household debt make deflation MUCH worse

For interest:

• • Venezuela