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<title>Deflation</title>

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Deflation

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</style><div role="note" class="hatnote navigation-not-searchable">For other uses, see <a href="Deflation_(disambiguation)" class="mw-disambig" title="Deflation (disambiguation)">Deflation (disambiguation)</a>.</div>

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</style><table class="sidebar sidebar-collapse nomobile nowraplinks"><tbody><tr><td class="sidebar-pretitle">Part of a series on</td></tr><tr><th class="sidebar-title-with-pretitle"><a href="Macroeconomics" title="Macroeconomics">Macroeconomics</a></th></tr><tr><td class="sidebar-image" style="padding-top:0.6em;"></td></tr><tr><td class="sidebar-content">

<div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="background:transparent;border-top:1px solid #aaa;text-align:center;;color: var(--color-base)">Basic concepts</div><div class="sidebar-list-content mw-collapsible-content hlist">

<ul><li><a href="Aggregate_demand" title="Aggregate demand">Aggregate demand</a></li>

<li><a href="Aggregate_supply" title="Aggregate supply">Aggregate supply</a></li>

<li><a href="Business_cycle" title="Business cycle">Business cycle</a></li>

<li><a href="Demand_shock" title="Demand shock">Demand shock</a></li>

<li><a href="Disinflation" title="Disinflation">Disinflation</a></li>

<li><a href="Effective_demand" title="Effective demand">Effective demand</a></li>

<li>Expectations

<ul><li><a href="Adaptive_expectations" title="Adaptive expectations">Adaptive</a></li>

<li><a href="Rational_expectations" title="Rational expectations">Rational</a></li></ul></li>

<li><a href="Financial_crisis" title="Financial crisis">Financial crisis</a></li>

<li><a href="Economic_growth" title="Economic growth">Growth</a></li>

<li><a href="Inflation" title="Inflation">Inflation</a>

<ul><li><a href="Demand-pull_inflation" title="Demand-pull inflation">Demand-pull</a></li>

<li><a href="Interest_rate" title="Interest rate">Interest rate</a></li>

<li><a href="Investment_(macroeconomics)" title="Investment (macroeconomics)">Investment</a></li>

<li><a href="Liquidity_trap" title="Liquidity trap">Liquidity trap</a></li>

<li><a href="Measures_of_national_income_and_output" title="Measures of national income and output">Measures of national income and output</a>

<li><a href="Microfoundations" title="Microfoundations">Microfoundations</a></li>

<li><a href="Money" title="Money">Money</a>

<ul><li><a href="Endogenous_money" title="Endogenous money">Endogenous</a></li></ul></li>

<li><a href="Money_creation" title="Money creation">Money creation</a></li>

<li><a href="Demand_for_money" title="Demand for money">Demand for money</a>

<ul><li><a href="Liquidity_preference" title="Liquidity preference">Liquidity preference</a></li></ul></li>

<li><a href="Money_supply" title="Money supply">Money supply</a></li>

<li><a href="National_accounts" title="National accounts">National accounts</a>

<li><a href="Nominal_rigidity" title="Nominal rigidity">Nominal rigidity</a></li>

<li><a href="Price_level" title="Price level">Price level</a></li>

<li><a href="Recession" title="Recession">Recession</a></li>

<li><a href="Shrinkflation" title="Shrinkflation">Shrinkflation</a></li>

<li><a href="Stagflation" title="Stagflation">Stagflation</a></li>

<li><a href="Supply_shock" title="Supply shock">Supply shock</a></li>

<li><a href="National_saving" title="National saving">Saving</a></li>

<li><a href="Unemployment" title="Unemployment">Unemployment</a></li></ul>

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<div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="background:transparent;border-top:1px solid #aaa;text-align:center;;color: var(--color-base)">Policies</div><div class="sidebar-list-content mw-collapsible-content hlist">

<ul><li><a href="Fiscal_policy" title="Fiscal policy">Fiscal</a></li>

<li><a href="Monetary_policy" title="Monetary policy">Monetary</a></li>

<li><a href="Commercial_policy" title="Commercial policy">Commercial</a></li>

<li><a href="Central_bank" title="Central bank">Central bank</a></li>

<li><a href="Universal_basic_income" title="Universal basic income">Universal basic income</a></li></ul>

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<div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="background:transparent;border-top:1px solid #aaa;text-align:center;;color: var(--color-base)">Models</div><div class="sidebar-list-content mw-collapsible-content hlist">

<li><a href="Keynesian_cross" title="Keynesian cross">Keynesian cross</a></li>

<li><a href="Multiplier_(economics)" title="Multiplier (economics)">Multiplier</a></li>

<li><a href="Accelerator_effect" title="Accelerator effect">Accelerator</a></li>

<li><a href="Phillips_curve" title="Phillips curve">Phillips curve</a></li>

<li><a href="Arrow%E2%80%93Debreu_model" title="Arrow–Debreu model">Arrow–Debreu</a></li>

<li><a href="Harrod%E2%80%93Domar_model" title="Harrod–Domar model">Harrod–Domar</a></li>

<li><a href="Solow%E2%80%93Swan_model" title="Solow–Swan model">Solow–Swan</a></li>

<li><a href="Ramsey%E2%80%93Cass%E2%80%93Koopmans_model" title="Ramsey–Cass–Koopmans model">Ramsey–Cass–Koopmans</a></li>

<li><a href="Overlapping_generations_model" title="Overlapping generations model">Overlapping generations</a></li>

<li><a href="General_equilibrium_theory" title="General equilibrium theory">General equilibrium</a>

<li><a href="Endogenous_growth_theory" title="Endogenous growth theory">Endogenous growth</a></li>

<li><a href="Matching_theory_(economics)" class="mw-redirect" title="Matching theory (economics)">Matching theory</a></li>

<li><a href="Mundell%E2%80%93Fleming_model" title="Mundell–Fleming model">Mundell–Fleming</a></li>

<li><a href="Overshooting_model" title="Overshooting model">Overshooting</a></li>

<li><a href="NAIRU" title="NAIRU">NAIRU</a></li></ul>

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<div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="background:transparent;border-top:1px solid #aaa;text-align:center;;color: var(--color-base)">Related fields</div><div class="sidebar-list-content mw-collapsible-content hlist">

<ul><li><a href="Econometrics" title="Econometrics">Econometrics</a></li>

<li><a href="Economic_statistics" title="Economic statistics">Economic statistics</a></li>

<li><a href="Monetary_economics" title="Monetary economics">Monetary economics</a></li>

<li><a href="Development_economics" title="Development economics">Development economics</a></li>

<li><a href="Evolutionary_economics" title="Evolutionary economics">Evolutionary economics</a></li>

<li><a href="International_economics" title="International economics">International economics</a></li></ul>

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<div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="background:transparent;border-top:1px solid #aaa;text-align:center;;color: var(--color-base)"><a href="History_of_macroeconomic_thought" title="History of macroeconomic thought">Schools</a></div><div class="sidebar-list-content mw-collapsible-content hlist">Mainstream

<ul><li><a href="Keynesian_economics" title="Keynesian economics">Keynesian</a>

<li><a href="Monetarism" title="Monetarism">Monetarism</a></li>

<li><a href="New_classical_macroeconomics" title="New classical macroeconomics">New classical</a>

<ul><li><a href="Real_business-cycle_theory" title="Real business-cycle theory">Real business-cycle theory</a></li></ul></li>

<li><a href="Stockholm_school_(economics)" class="mw-redirect" title="Stockholm school (economics)">Stockholm</a></li>

<li><a href="New_neoclassical_synthesis" title="New neoclassical synthesis">New neoclassical synthesis</a></li>

<li><a href="Saltwater_and_freshwater_economics" title="Saltwater and freshwater economics">Saltwater and freshwater</a></li></ul>

Heterodox

<ul><li><a href="Austrian_School" class="mw-redirect" title="Austrian School">Austrian</a></li>

<li><a href="Chartalism" title="Chartalism">Chartalism</a>

<ul><li><a href="Modern_monetary_theory" title="Modern monetary theory">Modern monetary theory</a></li></ul></li>

<li><a href="Ecological_economics" title="Ecological economics">Ecological</a></li>

<li><a href="Post-Keynesian_economics" title="Post-Keynesian economics">Post-Keynesian</a>

<ul><li><a href="Monetary_circuit_theory" title="Monetary circuit theory">Circuitism</a></li></ul></li>

<li><a href="Disequilibrium_macroeconomics" title="Disequilibrium macroeconomics">Disequilibrium</a></li>

<li><a href="Marxian_economics" title="Marxian economics">Marxian</a></li>

<li><a href="Market_monetarism" title="Market monetarism">Market monetarism</a></li>

<li><a href="Supply-side_economics" title="Supply-side economics">Supply-side</a></li></ul>

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<div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="background:transparent;border-top:1px solid #aaa;text-align:center;;color: var(--color-base)">People</div><div class="sidebar-list-content mw-collapsible-content hlist">

<ul><li><a href="Fran%C3%A7ois_Quesnay" title="François Quesnay">François Quesnay</a></li>

<li><a href="Adam_Smith" title="Adam Smith">Adam Smith</a></li>

<li><a href="Thomas_Robert_Malthus" title="Thomas Robert Malthus">Thomas Robert Malthus</a></li>

<li><a href="L%C3%A9on_Walras" title="Léon Walras">Léon Walras</a></li>

<li><a href="Knut_Wicksell" title="Knut Wicksell">Knut Wicksell</a></li>

<li><a href="Irving_Fisher" title="Irving Fisher">Irving Fisher</a></li>

<li><a href="Wesley_Clair_Mitchell" title="Wesley Clair Mitchell">Wesley Clair Mitchell</a></li>

<li><a href="John_Maynard_Keynes" title="John Maynard Keynes">John Maynard Keynes</a></li>

<li><a href="Alvin_Hansen" title="Alvin Hansen">Alvin Hansen</a></li>

<li><a href="Micha%C5%82_Kalecki" title="Michał Kalecki">Michał Kalecki</a></li>

<li><a href="Gunnar_Myrdal" title="Gunnar Myrdal">Gunnar Myrdal</a></li>

<li><a href="Simon_Kuznets" title="Simon Kuznets">Simon Kuznets</a></li>

<li><a href="Joan_Robinson" title="Joan Robinson">Joan Robinson</a></li>

<li><a href="Friedrich_Hayek" title="Friedrich Hayek">Friedrich Hayek</a></li>

<li><a href="John_Hicks" title="John Hicks">John Hicks</a></li>

<li><a href="Richard_Stone" title="Richard Stone">Richard Stone</a></li>

<li><a href="Hyman_Minsky" title="Hyman Minsky">Hyman Minsky</a></li>

<li><a href="Milton_Friedman" title="Milton Friedman">Milton Friedman</a></li>

<li><a href="Paul_Samuelson" title="Paul Samuelson">Paul Samuelson</a></li>

<li><a href="Lawrence_Klein" title="Lawrence Klein">Lawrence Klein</a></li>

<li><a href="Edmund_Phelps" title="Edmund Phelps">Edmund Phelps</a></li>

<li><a href="Robert_Lucas_Jr." title="Robert Lucas Jr.">Robert Lucas Jr.</a></li>

<li><a href="Edward_C._Prescott" title="Edward C. Prescott">Edward C. Prescott</a></li>

<li><a href="Peter_Diamond" title="Peter Diamond">Peter Diamond</a></li>

<li><a href="William_Nordhaus" title="William Nordhaus">William Nordhaus</a></li>

<li><a href="Joseph_Stiglitz" title="Joseph Stiglitz">Joseph Stiglitz</a></li>

<li><a href="Thomas_J._Sargent" title="Thomas J. Sargent">Thomas J. Sargent</a></li>

<li><a href="Paul_Krugman" title="Paul Krugman">Paul Krugman</a></li>

<li><a href="Greg_Mankiw" title="Greg Mankiw">N. Gregory Mankiw</a></li></ul>

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<ul><li><a href="Macroeconomic_model" title="Macroeconomic model">Macroeconomic model</a></li>

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<li><a href="Economics" title="Economics">Economics</a>

<ul><li><a href="Applied_economics" title="Applied economics">Applied</a></li></ul></li>

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<li><a href="Political_economy" title="Political economy">Political economy</a></li>

<li><a href="Mathematical_economics" title="Mathematical economics">Mathematical economics</a></li></ul>

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In <a href="Economics" title="Economics">economics</a>, deflation is a decrease in the general <a href="Price_level" title="Price level">price level</a> of goods and services.<a href="#cite_note-1">[1]</a> Deflation occurs when the <a href="Inflation_rate" class="mw-redirect" title="Inflation rate">inflation rate</a> falls below 0% and becomes negative. While inflation reduces the value of <a href="Currency" title="Currency">currency</a> over time, deflation increases it. This allows more goods and services to be bought than before with the same amount of currency. Deflation is distinct from <a href="Disinflation" title="Disinflation">disinflation</a>, a slowdown in the inflation rate; i.e., when inflation declines to a lower rate but is still positive.<a href="#cite_note-2">[2]</a>

Economists generally believe that a sudden deflationary shock is a problem in a modern economy because it increases the <a href="Real_versus_nominal_value_(economics)" class="mw-redirect" title="Real versus nominal value (economics)">real value</a> of <a href="Debt" title="Debt">debt</a>, especially if the deflation is unexpected. Deflation may also aggravate recessions and lead to a deflationary spiral <style data-mw-deduplicate="TemplateStyles:r1033199720">

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</style>(see <a href="#Deflationary_spiral">later section</a>).<a href="#cite_note-3">[3]</a><a href="#cite_note-EconomistDeflation-4">[4]</a><a href="#cite_note-5">[5]</a><a href="#cite_note-6">[6]</a><a href="#cite_note-7">[7]</a><a href="#cite_note-8">[8]</a><a href="#cite_note-9">[9]</a>

Some economists argue that prolonged deflationary periods are related to the underlying technological progress in an economy, because as productivity increases (<a href="Total_factor_productivity" title="Total factor productivity">TFP</a>), the cost of goods decreases.<a href="#cite_note-10">[10]</a>

Deflation usually happens when supply is high (when excess <a href="Production_(economics)" title="Production (economics)">production</a> occurs), when demand is low (when <a href="Consumption_(economics)" title="Consumption (economics)">consumption</a> decreases), or when the money supply decreases (sometimes in response to a <a href="Recession" title="Recession">contraction</a> created from <a href="Speculation" title="Speculation">careless investment</a> or a <a href="Credit_crunch" title="Credit crunch">credit crunch</a>) or because of a <a href="Net_capital_outflow" title="Net capital outflow">net capital outflow</a> from the economy.<a href="#cite_note-11">[11]</a> It can also occur when there is <a href="Flooding_the_market" title="Flooding the market">too much</a> <a href="Competition" title="Competition">competition</a> and too little <a href="Monopoly" title="Monopoly">market concentration</a>.<a href="#cite_note-12">[12]</a>

<div class="mw-heading mw-heading2"><h2 id="Causes_and_corresponding_types">Causes and corresponding types</h2></div>

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In the <a href="IS%E2%80%93LM_model" title="IS–LM model">IS–LM model</a> (investment and saving equilibrium – liquidity preference and money supply equilibrium model),<a href="#cite_note-13">[13]</a><a href="#cite_note-14">[14]</a><a href="#cite_note-:0-15">[15]</a> deflation is caused by a shift in the supply and demand curve for goods and services. This in turn can be caused by an increase in supply, a fall in demand, or both.

When prices are falling, consumers have an incentive to delay purchases and consumption until prices fall further, which in turn reduces overall economic activity. When purchases are delayed, productive capacity is idled and investment falls, leading to further reductions in <a href="Aggregate_demand" title="Aggregate demand">aggregate demand</a>. This is the deflationary spiral. The way to reverse this quickly would be to introduce an <a href="Stimulus_(economic)" class="mw-redirect" title="Stimulus (economic)">economic stimulus</a>. The government could increase productive spending on things like infrastructure or the central bank could start expanding the <a href="Money_supply" title="Money supply">money supply</a>.<a href="#cite_note-:0-15">[15]</a>

Deflation is also related to <a href="Risk_aversion" title="Risk aversion">risk aversion</a>, where investors and buyers will start hoarding money because its value is now increasing over time.<a href="#cite_note-Hussman2010-16">[16]</a> This can produce a <a href="Liquidity_trap" title="Liquidity trap">liquidity trap</a> or it may lead to shortages that entice investments yielding more jobs and commodity production. A central bank cannot, normally, charge negative interest for money, and even charging zero interest often produces less stimulative effect than slightly higher rates of interest. In a <a href="Autarky" title="Autarky">closed economy</a>, this is because charging zero interest also means having zero return on government securities, or even negative return on short maturities. In an open economy, it creates a <a href="Carry_(investment)" title="Carry (investment)">carry</a> trade and devalues the currency. A devalued currency produces higher prices for imports without necessarily stimulating exports to a like degree.

Deflation is the natural condition of economies when the supply of money is fixed, or does not grow as quickly as population and the economy. When this happens, the available amount of hard currency per person falls, in effect making money more scarce, and consequently, the <a href="Purchasing_power" title="Purchasing power">purchasing power</a> of each unit of currency increases. Deflation also occurs when improvements in production <a href="Efficiency" title="Efficiency">efficiency</a> lower the overall price of goods. <a href="Competition" title="Competition">Competition</a> in the marketplace often prompts those producers to apply at least some portion of these cost savings into reducing the asking price for their goods. When this happens, consumers pay less for those goods, and consequently, deflation has occurred, since purchasing power has increased.

Rising <a href="Productivity_improving_technologies_(historical)" class="mw-redirect" title="Productivity improving technologies (historical)">productivity</a> and reduced transportation cost created structural deflation during the accelerated productivity era from 1870 to 1900, but there was mild inflation for about a decade before the <a href="Federal_Reserve_Act" title="Federal Reserve Act">establishment of the Federal Reserve</a> in 1913.<a href="#cite_note-Wells1890-17">[17]</a> There was inflation during <a href="World_War_I" title="World War I">World War I</a>, but deflation returned again after the war and during the 1930s depression. Most nations abandoned the <a href="Gold_standard" title="Gold standard">gold standard</a> in the 1930s so that there is less reason to expect deflation, aside from the collapse of speculative asset classes, under a <a href="Fiat_money" title="Fiat money">fiat monetary system</a> with low productivity growth.

In <a href="Mainstream_economics" title="Mainstream economics">mainstream economics</a>, deflation may be caused by a combination of the supply and demand for goods and the supply and demand for money, specifically the supply of money going down and the supply of goods going up. Historic episodes of deflation have often been associated with the supply of goods going up (due to increased productivity) without an increase in the supply of money, or (as with the <a href="Great_Depression" title="Great Depression">Great Depression</a> and possibly Japan in the early 1990s) the demand for goods going down combined with a decrease in the money supply. Studies of the Great Depression by <a href="Ben_Bernanke" title="Ben Bernanke">Ben Bernanke</a> have indicated that, in response to decreased demand, the Federal Reserve of the time decreased the money supply, hence contributing to deflation.

Causes include, on the demand side:

<ul><li>Growth deflation</li>

<li>Hoarding</li></ul>

And on the supply side:

<ul><li>Bank credit deflation</li>

<li>Debt deflation</li>

<li>Decision on the money supply side</li>

<li>Credit deflation</li></ul>

<div class="mw-heading mw-heading3"><h3 id="Growth_deflation">Growth deflation</h3></div>

Growth deflation is an enduring decrease in the real cost of goods and services as the result of technological progress, accompanied by competitive price cuts, resulting in an increase in aggregate demand.<a href="#cite_note-18">[18]</a>

A structural deflation existed from the 1870s until the cycle upswing that started in 1895. The deflation was caused by the decrease in the production and distribution costs of goods. It resulted in competitive price cuts when markets were oversupplied. The mild inflation after 1895 was attributed to the increase in gold supply that had been occurring for decades.<a href="#cite_note-19">[19]</a> There was a sharp rise in prices during World War I, but deflation returned at the war's end. By contrast, under a fiat monetary system, there was high productivity growth from the end of <a href="World_War_II" title="World War II">World War II</a> until the 1960s, but no deflation.<a href="#cite_note-20">[20]</a>

Historically not all episodes of deflation correspond with periods of poor economic growth.<a href="#cite_note-21">[21]</a>

Productivity and deflation are discussed in a 1940 study by the <a href="Brookings_Institution" title="Brookings Institution">Brookings Institution</a> that gives productivity by major US industries from 1919 to 1939, along with real and nominal wages. Persistent deflation was clearly understood as being the result of the enormous gains in productivity of the period.<a href="#cite_note-22">[22]</a> By the late 1920s, most goods were over supplied, which contributed to high unemployment during the Great Depression.<a href="#cite_note-Beaudreau1996-23">[23]</a>

<div class="mw-heading mw-heading3"><h3 id="Bank_credit_deflation">Bank credit deflation</h3></div>

Bank credit deflation is a decrease in the bank credit supply due to bank failures or increased perceived risk of defaults by private entities or a contraction of the money supply by the central bank.<a href="#cite_note-24">[24]</a>

<div class="mw-heading mw-heading3"><h3 id="Debt_deflation">Debt deflation</h3></div>

<div role="note" class="hatnote navigation-not-searchable">Main article: <a href="Debt_deflation" title="Debt deflation">Debt deflation</a></div>

Debt deflation is a phenomenon associated with the end of long-term credit cycles. It was proposed as a theory by <a href="Irving_Fisher" title="Irving Fisher">Irving Fisher</a> (1933) to explain the deflation of the <a href="Great_Depression" title="Great Depression">Great Depression</a>.<a href="#cite_note-25">[25]</a>

<div class="mw-heading mw-heading3"><h3 id="Money_supply-side_deflation">Money supply-side deflation</h3></div>

From a monetarist perspective, deflation is caused primarily by a reduction in the <a href="Velocity_of_money" title="Velocity of money">velocity of money</a> or the amount of <a href="Money_supply" title="Money supply">money supply</a> per person.

A historical analysis of money velocity and <a href="Monetary_base" title="Monetary base">monetary base</a> shows an inverse correlation: for a given percentage decrease in the <a href="Monetary_base" title="Monetary base">monetary base</a> the result is a nearly equal percentage increase in money velocity.<a href="#cite_note-Hussman2010-16">[16]</a> This is to be expected because monetary base (<var style="padding-right: 1px;">M</var><var style="padding-right: 1px;">B</var>), <a href="Velocity_of_money" title="Velocity of money">velocity</a> of base money (<var style="padding-right: 1px;">V</var><var style="padding-right: 1px;">B</var>), price level (P) and real output (Y) are related by definition: <var style="padding-right: 1px;">M</var><var style="padding-right: 1px;">B</var>V<var style="padding-right: 1px;">B</var> = <var style="padding-right: 1px;">P</var><var style="padding-right: 1px;">Y</var>.<a href="#cite_note-26">[26]</a> However, the monetary base is a much narrower definition of money than <a href="M2_(economics)" class="mw-redirect" title="M2 (economics)">M2 money supply</a>. Additionally, the velocity of the monetary base is interest-rate sensitive, the highest velocity being at the highest interest rates.<a href="#cite_note-Hussman2010-16">[16]</a>

In the early history of the United States, there was no national currency and an insufficient supply of coinage.<a href="#cite_note-David_Ginsburg-27">[27]</a> Banknotes were the majority of the money in circulation. During <a href="Financial_crises" class="mw-redirect" title="Financial crises">financial crises</a>, many banks failed and their notes became worthless. Also, banknotes were discounted relative to gold and silver, the discount depended on the financial strength of the bank.<a href="#cite_note-Taylor_1951-28">[28]</a>

In recent years changes in the money supply have historically taken a long time to show up in the price level, with a rule of thumb lag of at least 18 months. More recently Alan Greenspan cited the time lag as taking between 12 and 13 quarters.<a href="#cite_note-29">[29]</a> Bonds, equities and commodities have been suggested as reservoirs for buffering changes in the money supply.<a href="#cite_note-30">[30]</a>

<div class="mw-heading mw-heading3"><h3 id="Credit_deflation">Credit deflation</h3></div>

In modern credit-based economies, deflation may be caused by the central bank initiating higher interest rates (i.e., to "control" inflation), thereby possibly popping an asset <a href="Bubble_(economics)" class="mw-redirect" title="Bubble (economics)">bubble</a>. In a credit-based economy, a slow-down or fall in lending leads to less money in circulation, with a further sharp fall in money supply as confidence reduces and velocity weakens, with a consequent sharp fall-off in demand for employment or goods. The fall in demand causes a fall in prices as a supply <a href="Overproduction" title="Overproduction">glut</a> develops. This becomes a deflationary spiral when prices fall below the costs of financing production, or repaying debt levels incurred at the prior price level. Businesses, unable to make enough profit no matter how low they set prices, are then liquidated. Banks get assets that have fallen dramatically in value since their mortgage loan was made, and if they sell those assets, they further glut supply, which only exacerbates the situation. To slow or halt the deflationary spiral, banks will often withhold collecting on non-performing loans (<a href="Economic_history_of_Japan#Deflation_from_the_1990s_to_present" title="Economic history of Japan">as in Japan</a>, and most recently America and Spain). This is often no more than a stop-gap measure, because they must then restrict credit, since they do not have money to lend, which further reduces demand, and so on.

<div class="mw-heading mw-heading4"><h4 id="Historical_examples_of_credit_deflation">Historical examples of credit deflation</h4></div>

In the early economic history of the United States, cycles of inflation and deflation correlated with capital flows between regions, with money being loaned from the financial center in the Northeast to the commodity producing regions of the (mid)-West and South. In a <a href="Procyclical" class="mw-redirect" title="Procyclical">procyclical</a> manner, prices of commodities rose when capital was flowing in, that is, when banks were willing to lend, and fell in the depression years of 1818 and 1839 when banks called in loans.<a href="#cite_note-North1966-31">[31]</a> Also, there was no national paper currency at the time and there was a scarcity of coins. Most money circulated as banknotes, which typically sold at a discount according to distance from the issuing bank and the bank's perceived financial strength.

When banks failed their notes were redeemed for bank reserves, which often did not result in payment at <a href="Par_value" title="Par value">par value</a>, and sometimes the notes became worthless. Notes of weak surviving banks traded at steep discounts.<a href="#cite_note-David_Ginsburg-27">[27]</a><a href="#cite_note-Taylor_1951-28">[28]</a> During the Great Depression, people who owed money to a bank whose deposits had been frozen would sometimes buy bank books (deposits of other people at the bank) at a discount and use them to pay off their debt at par value.<a href="#cite_note-32">[32]</a>

Deflation occurred periodically in the U.S. during the 19th century (the most important exception was during the Civil War). This deflation was at times caused by technological progress that created significant economic growth, but at other times it was triggered by <a href="Financial_crisis#19th_century" title="Financial crisis">financial crises</a> – notably the <a href="Panic_of_1837" title="Panic of 1837">Panic of 1837</a> which caused deflation through 1844, and the <a href="Panic_of_1873" title="Panic of 1873">Panic of 1873</a> which triggered the <a href="Long_Depression" title="Long Depression">Long Depression</a> that lasted until 1879.<a href="#cite_note-Wells1890-17">[17]</a><a href="#cite_note-Taylor_1951-28">[28]</a><a href="#cite_note-North1966-31">[31]</a> These deflationary periods preceded the establishment of the U.S. <a href="Federal_Reserve_System" class="mw-redirect" title="Federal Reserve System">Federal Reserve System</a> and its active management of monetary matters. Episodes of deflation have been rare and brief since the Federal Reserve was created (a notable exception being the <a href="Great_Depression" title="Great Depression">Great Depression</a>) while U.S. economic progress has been unprecedented.

A financial crisis in England in 1818 caused banks to call in loans and curtail new lending, draining specie out of the U.S. The Bank of the United States also reduced its lending. Prices for cotton and tobacco fell. The price of agricultural commodities also was pressured by a return of normal harvests following 1816, the <a href="Year_without_a_summer" class="mw-redirect" title="Year without a summer">year without a summer</a>, that caused large scale famine and high agricultural prices.<a href="#cite_note-33">[33]</a>

There were several causes of the deflation of the severe depression of 1839–1843, which included an oversupply of agricultural commodities (importantly cotton) as new cropland came into production following large federal land sales a few years earlier, banks requiring payment in gold or silver, the failure of several banks, default by several states on their bonds and British banks cutting back on specie flow to the U.S.<a href="#cite_note-North1966-31">[31]</a><a href="#cite_note-34">[34]</a>

This cycle has been traced out on a broad scale during the <a href="Great_Depression" title="Great Depression">Great Depression</a>. Partly because of overcapacity and market saturation and partly as a result of the <a href="Smoot%E2%80%93Hawley_Tariff_Act" title="Smoot–Hawley Tariff Act">Smoot–Hawley Tariff Act</a>, international trade contracted sharply, severely reducing demand for goods, thereby idling a great deal of capacity, and setting off a string of bank failures.<a href="#cite_note-Beaudreau1996-23">[23]</a> A similar situation in Japan, beginning with the stock and real estate market collapse in the early 1990s, was arrested by the Japanese government preventing the collapse of most banks and taking over direct control of several in the worst condition.

<div class="mw-heading mw-heading3"><h3 id="Scarcity_of_official_money">Scarcity of official money</h3></div>

The United States had no national paper money until 1862 (<a href="Greenback_(money)" class="mw-redirect" title="Greenback (money)">greenbacks</a> used to fund the Civil War), but these notes were discounted to gold until 1877. There was also a shortage of U.S. minted coins. Foreign coins, such as Mexican silver, were commonly used.<a href="#cite_note-David_Ginsburg-27">[27]</a> At times banknotes were as much as 80% of currency in circulation before the Civil War. In the financial crises of 1818–19 and 1837–1841, many banks failed, leaving their money to be redeemed below <a href="Par_value" title="Par value">par value</a> from reserves. Sometimes the notes became worthless, and the notes of weak surviving banks were heavily discounted.<a href="#cite_note-Taylor_1951-28">[28]</a> The Jackson administration opened branch mints, which over time increased the supply of coins. Following the 1848 finding of gold in the <a href="Sierra_Nevada_(U.S.)" class="mw-redirect" title="Sierra Nevada (U.S.)">Sierra Nevada</a>, enough gold came to market to devalue gold relative to silver. To equalize the value of the two metals in coinage, the US mint slightly reduced the silver content of new coinage in 1853.<a href="#cite_note-David_Ginsburg-27">[27]</a>

When structural deflation appeared in the years following 1870, a common explanation given by various government inquiry committees was a scarcity of gold and silver, although they usually mentioned the changes in industry and trade we now call productivity. However, <a href="David_Ames_Wells" title="David Ames Wells">David A. Wells</a> (1890) notes that the U.S. money supply during the period 1879-1889 actually rose 60%, the increase being in gold and silver, which rose against the percentage of national bank and legal tender notes. Furthermore, Wells argued that the deflation only lowered the cost of goods that benefited from recent improved methods of manufacturing and transportation. Goods produced by craftsmen did not decrease in price, nor did many services, and the cost of labor actually increased. Also, deflation did not occur in countries that did not have modern manufacturing, transportation and communications.<a href="#cite_note-Wells1890-17">[17]</a>

By the end of the 19th century, deflation ended and turned to mild inflation. <a href="William_Stanley_Jevons" title="William Stanley Jevons">William Stanley Jevons</a> predicted rising gold supply would cause inflation decades before it actually did. <a href="Irving_Fisher" title="Irving Fisher">Irving Fisher</a> blamed the worldwide inflation of the pre-WWI years on rising gold supply.<a href="#cite_note-35">[35]</a>

In economies with an unstable currency, barter and other alternate currency arrangements such as <a href="Dollarization" class="mw-redirect" title="Dollarization">dollarization</a> are common, and therefore when the 'official' money becomes scarce (or unusually unreliable), commerce can still continue (e.g., most recently in <a href="Hyperinflation_in_Zimbabwe" title="Hyperinflation in Zimbabwe">Zimbabwe</a>). Since in such economies the central government is often unable, even if it were willing, to adequately control the internal economy, there is no pressing need for individuals to acquire official currency except to pay for imported goods.

<div class="mw-heading mw-heading3"><h3 id="Currency_pegs_and_monetary_unions">Currency pegs and monetary unions</h3></div>

If a country <a href="Currency_peg" class="mw-redirect" title="Currency peg">pegs</a> its currency to one of another country that features a higher <a href="Productivity_growth" class="mw-redirect" title="Productivity growth">productivity growth</a> or a more favourable <a href="Unit_cost" title="Unit cost">unit cost</a> development, it must – to maintain its competitiveness – either become equally more productive or lower its <a href="Factor_prices" class="mw-redirect" title="Factor prices">factor prices</a> (e.g., wages). Cutting factor prices fosters deflation. <a href="Monetary_union" class="mw-redirect" title="Monetary union">Monetary unions</a> have a similar effect to currency pegs.

<div class="mw-heading mw-heading2"><h2 id="Effects">Effects</h2></div>

<div class="mw-heading mw-heading3"><h3 id="On_spending_and_borrowing">On spending and borrowing</h3></div>

Some believe that, in the absence of large amounts of debt, deflation would be a welcome effect because the lowering of prices increases <a href="Purchasing_power" title="Purchasing power">purchasing power</a>.<a href="#cite_note-36">[36]</a> However, while an increase in the purchasing power of one's money benefits some, it amplifies the sting of debt for others: after a period of deflation, the payments to service a debt represent a larger amount of purchasing power than they did when the debt was first incurred. Consequently, deflation can be thought of as an effective increase in a loan's interest rate. If, as during the <a href="Great_Depression" title="Great Depression">Great Depression</a> in the United States, deflation averages 10% per year, even an interest-free loan is unattractive as it must be repaid with money worth 10% more each year.

Under normal conditions, most central banks, such as the Federal Reserve, implement policy by setting a target for a short-term interest rate – the overnight <a href="Federal_funds_rate" title="Federal funds rate">federal funds rate</a> in the U.S. – and enforcing that target by buying and selling securities in open capital markets. When the short-term interest rate hits zero, the central bank can no longer ease policy by lowering its usual interest-rate target. With interest rates near zero, <a href="Debt_relief" title="Debt relief">debt relief</a> becomes an increasingly important tool in managing deflation.

In recent times, as loan terms have grown in length and loan financing (or leveraging) is common among many types of investments, the costs of deflation to borrowers has grown larger.

<div class="mw-heading mw-heading3"><h3 id="On_savings_and_investments">On savings and investments</h3></div>

Deflation can discourage private investment, because there is reduced expectations on future profits when future prices are lower. Consequently, with reduced private investments, <a href="#Deflationary_spiral">spiraling deflation</a> can cause a collapse in <a href="Aggregate_demand" title="Aggregate demand">aggregate demand</a>. Without the "hidden risk of inflation", it may become more prudent for institutions to hold on to money, and not to spend or invest it (burying money). They are therefore rewarded by <a href="Saving" title="Saving">saving</a> and holding money. This "hoarding" behavior is seen as undesirable by most economists. <a href="Friedrich_Hayek" title="Friedrich Hayek">Friedrich Hayek</a>, a <a href="Libertarian" class="mw-redirect" title="Libertarian">libertarian</a> <a href="Austrian_school" class="mw-redirect" title="Austrian school">Austrian-school economist</a>, wrote that:

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</style><blockquote class="templatequote">It is agreed that hoarding money, whether in cash or in idle balances, is deflationary in its effects. No one thinks that deflation is in itself desirable.</blockquote><div class="templatequotecite">— Hayek (1932)<a href="#cite_note-37">[37]</a></div>

<div class="mw-heading mw-heading2"><h2 id="Compared_with_inflation">Compared with inflation</h2></div>

Deflation causes a transfer of wealth from borrowers and holders of illiquid assets to the benefit of savers and of holders of liquid assets and currency, and because confused <a href="Price_signal" title="Price signal">price signals</a> cause <a href="Malinvestment" title="Malinvestment">malinvestment</a> in the form of underinvestment. In this sense, its effects are the opposite of inflation, the effect of which is to transfer wealth from currency holders and lenders (savers) and to borrowers, including governments, and cause overinvestment. Whereas inflation encourages short term consumption and can similarly overstimulate investment in projects that may not be worthwhile in real terms (for example, the <a href="Dot-com_bubble" title="Dot-com bubble">dot-com</a> and <a href="Real_estate_bubble" class="mw-redirect" title="Real estate bubble">housing bubbles</a>), deflation reduces investment even when there is a real-world demand not being met. In modern economies, deflation is usually associated with economic depression, as occurred in the <a href="Great_Depression" title="Great Depression">Great Depression</a> and the <a href="Long_Depression" title="Long Depression">Long Depression</a>. Deflation was present during most economic depressions in US history.<a href="#cite_note-38">[38]</a>

<div class="mw-heading mw-heading2"><h2 id="Deflationary_spiral">Deflationary spiral</h2></div>

A deflationary spiral is a situation where decreases in the price level lead to lower production, which in turn leads to lower wages and demand, which leads to further decreases in the price level.<a href="#cite_note-39">[39]</a><a href="#cite_note-academia.edu-40">[40]</a> Since reductions in general price level are called deflation, a deflationary spiral occurs when reductions in price lead to a <a href="Virtuous_circle_and_vicious_circle" class="mw-redirect" title="Virtuous circle and vicious circle">vicious circle</a>, where a problem exacerbates its own cause.<a href="#cite_note-41">[41]</a> In science, this effect is also known as a <a href="Positive_feedback" title="Positive feedback">positive feedback</a> loop. Another economic example of this situation in economics is the <a href="Bank_run" title="Bank run">bank run</a>.

The <a href="Great_Depression" title="Great Depression">Great Depression</a> was regarded by some as a deflationary spiral.<a href="#cite_note-42">[42]</a> A deflationary spiral is the modern <a href="Macroeconomic" class="mw-redirect" title="Macroeconomic">macroeconomic</a> version of the <a href="General_glut" title="General glut">general glut</a> controversy of the 19th century. Another related idea is <a href="Irving_Fisher" title="Irving Fisher">Irving Fisher</a>'s theory that <a href="Debt_deflation" title="Debt deflation">excess debt can cause a continuing deflation</a>.

<div class="mw-heading mw-heading2"><h2 id="Counteracting_deflation">Counteracting deflation</h2></div>

During severe deflation, targeting an interest rate (the usual method of determining how much currency to create) may be ineffective, because even lowering the short-term interest rate to zero may result in a real interest rate which is too high to attract credit-worthy borrowers. In the 21st-century, negative interest rates have been tried, but it cannot be too negative, since people might withdraw cash from bank accounts if they have a negative interest rate. Thus the central bank must directly set a target for the quantity of money (called "<a href="Quantitative_easing" title="Quantitative easing">quantitative easing</a>") and may use extraordinary methods to increase the supply of money, e.g. purchasing financial assets of a type not usually used by the central bank as reserves (such as <a href="Mortgage-backed_security" title="Mortgage-backed security">mortgage-backed securities</a>). Before he was <a href="Chairman_of_the_Federal_Reserve" class="mw-redirect" title="Chairman of the Federal Reserve">Chairman</a> of the United States <a href="Federal_Reserve_System" class="mw-redirect" title="Federal Reserve System">Federal Reserve</a>, <a href="Ben_Bernanke" title="Ben Bernanke">Ben Bernanke</a> claimed in 2002, "sufficient injections of money will ultimately always reverse a deflation",<a href="#cite_note-43">[43]</a> although Japan's deflationary spiral was not broken by the amount of quantitative easing provided by the Bank of Japan.

Until the 1930s, it was commonly believed by <a href="Classical_economists" class="mw-redirect" title="Classical economists">economists</a> that deflation would cure itself. As prices decreased, demand would naturally increase, and the economic system would correct itself without outside intervention.

This view was challenged in the 1930s during the <a href="Great_Depression" title="Great Depression">Great Depression</a>. <a href="Keynesian_economics" title="Keynesian economics">Keynesian economists</a> argued that the economic system was not self-correcting with respect to deflation and that governments and central banks had to take active measures to boost demand through tax cuts or increases in government spending. Reserve requirements from the central bank were high compared to recent times. So were it not for redemption of currency for gold (in accordance with the gold standard), the central bank could have effectively increased money supply by simply reducing the reserve requirements and through <a href="Open_market_operations" class="mw-redirect" title="Open market operations">open market operations</a> (e.g., buying treasury bonds for cash) to offset the reduction of money supply in the private sectors due to the collapse of credit (credit is a form of money).

With the rise of <a href="Monetarism" title="Monetarism">monetarist</a> ideas, the focus in fighting deflation was put on expanding demand by lowering interest rates (i.e., reducing the "cost" of money). This view has received criticism in light of the failure of accommodative policies in both Japan and the US to spur demand after stock market shocks in the early 1990s and in 2000–2002, respectively. <a href="Austrian_economists" class="mw-redirect" title="Austrian economists">Austrian economists</a> worry about the inflationary impact of monetary policies on asset prices. Sustained low real rates can cause higher asset prices and excessive debt accumulation. Therefore, lowering rates may prove to be only a temporary palliative, aggravating an eventual debt deflation crisis.

<div class="mw-heading mw-heading3"><h3 id="Special_borrowing_arrangements">Special borrowing arrangements</h3></div>

When the central bank has lowered nominal interest rates to zero, it can no longer further stimulate demand by lowering interest rates. This is the famous <a href="Liquidity_trap" title="Liquidity trap">liquidity trap</a>. When deflation takes hold, it requires "<a href="Quantitative_easing" title="Quantitative easing">special arrangements</a>" to lend money at a zero nominal rate of interest (which could still be a very high real rate of interest, due to the negative inflation rate) in order to artificially increase the money supply.

<div class="mw-heading mw-heading3"><h3 id="Capital">Capital</h3></div>

Although the values of <a href="Capital_asset" title="Capital asset">capital assets</a> are often casually said to deflate when they decline, this usage is not consistent with the usual definition of deflation; a more accurate description for a decrease in the value of a capital asset is <a href="Depreciation_(economics)" title="Depreciation (economics)">economic depreciation</a>. Another term, the <a href="Depreciation" title="Depreciation">accounting conventions of depreciation</a> are standards to determine a decrease in values of capital assets when market values are not readily available or practical.

<div class="mw-heading mw-heading2"><h2 id="Historical_examples">Historical examples</h2></div>

<div class="mw-heading mw-heading3"><h3 id="EU_countries">EU countries</h3></div>

The inflation rate of <a href="Greece" title="Greece">Greece</a> was negative during three years from 2013 to 2015. The same applies to <a href="Bulgaria" title="Bulgaria">Bulgaria</a>, <a href="Cyprus" title="Cyprus">Cyprus</a>, <a href="Spain" title="Spain">Spain</a>, and <a href="Slovakia" title="Slovakia">Slovakia</a> from 2014 to 2016. Greece, Cyprus, Spain, and Slovakia are members of the <a href="European_monetary_union" class="mw-redirect" title="European monetary union">European monetary union</a>. The Bulgarian currency, the <a href="Bulgarian_lev" title="Bulgarian lev">lev</a>, is <a href="Currency_peg" class="mw-redirect" title="Currency peg">pegged</a> to the <a href="Euro" title="Euro">Euro</a> with a fixed exchange rate. In the entire <a href="European_Union" title="European Union">European Union</a> and the <a href="Eurozone" title="Eurozone">Eurozone</a>, a <a href="Disinflation" title="Disinflation">disinflationary</a> development was to be observed in the years 2011 to 2015.

<th>Bulgaria</th>

<th>Greece</th>

<th>Cyprus</th>

<th>Spain</th>

<th>Slovakia</th>

<th>Eurozone

</th></tr>

<tr>

<td>2.7

</td></tr>

<tr>

<td>2.5

</td></tr>

<tr>

<td>1.4

</td></tr>

<tr>

<td>0.4

</td></tr>

<tr>

<td>0.2

</td></tr>

<tr>

<td>0.2

</td></tr>

<tr>

<td>1.5

</td></tr></tbody></table>

Table: <a href="Harmonised_index_of_consumer_prices" class="mw-redirect" title="Harmonised index of consumer prices">Harmonised index of consumer prices</a>. Annual average rate of change (%) (HICP inflation rate).<a href="#cite_note-44">[44]</a> Negative values are highlighted in colour.

Following the <a href="1997_Asian_financial_crisis" title="1997 Asian financial crisis">1997 Asian financial crisis</a>, <a href="Hong_Kong" title="Hong Kong">Hong Kong</a> experienced a long period of deflation which did not end until the fourth quarter of 2004.<a href="#cite_note-45">[45]</a> Many <a href="East_Asia" title="East Asia">East Asian</a> currencies devalued following the crisis. The <a href="Hong_Kong_dollar" title="Hong Kong dollar">Hong Kong dollar</a>, however, was pegged to the <a href="United_States_dollar" title="United States dollar">U.S. dollar</a>, leading to an adjustment instead by a deflation of <a href="Consumer_price_index" title="Consumer price index">consumer prices</a>. The situation was worsened by the increasingly cheap exports from <a href="Mainland_China" title="Mainland China">mainland China</a>, and "weak <a href="Consumer_confidence" title="Consumer confidence">consumer confidence</a>" in Hong Kong. This deflation was accompanied by an economic slump that was more severe and prolonged than those of the surrounding countries that devalued their currencies in the wake of the Asian financial crisis.<a href="#cite_note-46">[46]</a><a href="#cite_note-47">[47]</a>

<div class="mw-heading mw-heading3"><h3 id="Ireland">Ireland</h3></div>

In February 2009, <a href="Republic_of_Ireland" title="Republic of Ireland">Ireland</a>'s <a href="Central_Statistics_Office_(Ireland)" title="Central Statistics Office (Ireland)">Central Statistics Office</a> announced that during January 2009, the country experienced deflation, with prices falling by 0.1% from the same time in 2008. This was the first time deflation has hit the Irish economy since 1960. Overall consumer prices decreased by 1.7% in the month.<a href="#cite_note-48">[48]</a>

Brian Lenihan, Ireland's Minister for Finance, mentioned deflation in an interview with RTÉ Radio. According to RTÉ's account,<a href="#cite_note-49">[49]</a> "Minister for Finance Brian Lenihan has said that deflation must be taken into account when Budget cuts in child benefit, public sector pay and professional fees are being considered. Mr Lenihan said month-on-month there has been a 6.6% decline in the cost of living this year."

This interview is notable in that the deflation referred to is not discernibly regarded negatively by the Minister in the interview. The Minister mentions the deflation as an item of data helpful to the arguments for a cut in certain benefits. The alleged economic harm caused by deflation is not alluded to or mentioned by this member of government. This is a notable example of deflation in the modern era being discussed by a senior financial Minister without any mention of how it might be avoided, or whether it should be.<a href="#cite_note-50">[50]</a>

<div class="mw-heading mw-heading3"><h3 id="Japan">Japan</h3></div>

Deflation started in the early 1990s.<a href="#cite_note-academia.edu-40">[40]</a> The <a href="Bank_of_Japan" title="Bank of Japan">Bank of Japan</a> and the government tried to eliminate it by reducing interest rates and "<a href="Quantitative_easing" title="Quantitative easing">quantitative easing</a>," but did not create a sustained increase in broad money and deflation persisted. In July 2006, the zero-rate policy was ended.

Systemic reasons for deflation in Japan can be said to include:

<ul><li><a href="Money_supply#Japan" title="Money supply">Tight monetary conditions</a>: The Bank of Japan kept monetary policy loose only when inflation was below zero, tightening whenever deflation ends.<a href="#cite_note-51">[51]</a></li>

<li><a href="Demographics_of_Japan" title="Demographics of Japan">Unfavorable demographics</a>: Japan has an aging population (22.6% over age 65) which has been declining since 2011, as the death rate exceeds the birth rate.<a href="#cite_note-52">[52]</a><a href="#cite_note-53">[53]</a></li>

<li>Fallen <a href="Asset" title="Asset">asset</a> prices: In the case of Japan asset price deflation was a mean reversion or correction back to the price level that prevailed before the asset bubble. There was a rather large <a href="Price_bubble" class="mw-redirect" title="Price bubble">price bubble</a> in <a href="Stock" title="Stock">stocks</a> and especially <a href="Real_estate" title="Real estate">real estate</a> in Japan in the 1980s (peaking in late 1989).<a href="#cite_note-54">[54]</a><a href="#cite_note-55">[55]</a></li>

<li>Insolvent companies: Banks lent to companies and individuals that invested in real estate. When real estate values dropped, these loans could not be paid. The banks could try to collect on the collateral (land), but this wouldn't pay off the loan. Banks delayed that decision, hoping asset prices would improve. These delays were allowed by national banking regulators. Some banks made even more loans to these companies that are used to service the debt they already had. This continuing process is known as maintaining an "unrealized loss", and until the assets are completely revalued and/or sold off (and the loss realized), it will continue to be a deflationary force in the economy. Improving bankruptcy law, land transfer law, and tax law have been suggested as methods to speed this process and thus end the deflation.<a href="#cite_note-56">[56]</a><a href="#cite_note-57">[57]</a><a href="#cite_note-58">[58]</a><a href="#cite_note-59">[59]</a><a href="#cite_note-60">[60]</a></li>

<li>Insolvent banks: Banks with a larger percentage of their loans which are "non-performing", that is to say, they are not receiving payments on them, but have not yet written them off, cannot lend more money; they must increase their cash reserves to cover the bad loans.<a href="#cite_note-61">[61]</a><a href="#cite_note-62">[62]</a></li>

<li>Fear of insolvent banks: Japanese people are afraid that banks will collapse so they prefer to buy (United States or Japanese) Treasury bonds instead of saving their money in a bank account. This likewise means the money is not available for lending and therefore economic growth. This means that the savings rate depresses consumption, but does not appear in the economy in an efficient form to spur new investment. People also save by owning real estate, further slowing growth, since it inflates land prices.</li>

<li>Imported deflation: Japan imports Chinese and other countries' inexpensive consumable goods (due to lower wages and fast growth in those countries) and inexpensive raw materials, many of which reached all time real price minimums in the early 2000s. Thus, prices of imported products are decreasing. Domestic producers must match these prices in order to remain competitive. This decreases prices for many things in the economy, and thus is deflationary.<a href="#cite_note-63">[63]</a><a href="#cite_note-64">[64]</a></li>

<li>Stimulus spending: According to both Austrian and monetarist economic theory, Keynesian stimulus spending actually has a depressing effect. This is because the government is competing against private industry, and usurping private investment dollars.<a href="#cite_note-65">[65]</a> In 1998, for example, Japan produced a stimulus package of more than 16 trillion yen, over half of it public works that would have a quashing effect on an equivalent amount of private, wealth-creating economic activity.<a href="#cite_note-66">[66]</a> Overall, Japan's stimulus packages added up to over one hundred trillion yen, and yet they failed. According to these economic schools, that stimulus money actually perpetuated the problem it was intended to cure.<a href="#cite_note-67">[67]</a><a href="#cite_note-68">[68]</a></li></ul>

In November 2009, Japan returned to deflation, according to <a href="The_Wall_Street_Journal" title="The Wall Street Journal">The Wall Street Journal</a>. <a href="Bloomberg_L.P." title="Bloomberg L.P.">Bloomberg L.P.</a> reports that consumer prices fell in October 2009 by a near-record 2.2%.<a href="#cite_note-69">[69]</a> It was not until 2014 that new <a href="Abenomics" title="Abenomics">economic</a> policies laid out by <a href="Prime_Minister_of_Japan" title="Prime Minister of Japan">Prime Minister</a> <a href="Shinzo_Abe" title="Shinzo Abe">Shinzo Abe</a> finally allowed for significant levels of inflation to return.<a href="#cite_note-70">[70]</a> However, the <a href="COVID-19_recession" title="COVID-19 recession">COVID-19 recession</a> once again led to deflation in 2020, with consumer good prices quickly falling, prompting heavy government stimulus worth over 20% of GDP.<a href="#cite_note-71">[71]</a><a href="#cite_note-72">[72]</a><a href="#cite_note-73">[73]</a> As a result, it is likely that deflation will remain as a long-term economic issue for Japan.<a href="#cite_note-74">[74]</a>

<div class="mw-heading mw-heading3"><h3 id="United_Kingdom">United Kingdom</h3></div>

During <a href="World_War_I" title="World War I">World War I</a> the <a href="United_Kingdom" title="United Kingdom">British</a> <a href="Pound_sterling" title="Pound sterling">pound sterling</a> was removed from the gold standard. The motivation for this policy change was to finance World War I; one of the results was inflation, and a rise in the gold price, along with the corresponding drop in international exchange rates for the pound. When the pound was returned to the gold standard after the war it was done on the basis of the pre-war gold price, which, since it was higher than equivalent price in gold, required prices to fall to realign with the higher target value of the pound.

The UK experienced deflation of approximately 10% in 1921, 14% in 1922, and 3 to 5% in the early 1930s.<a href="#cite_note-75">[75]</a>

<div class="mw-heading mw-heading3"><h3 id="United_States">United States</h3></div>

<div class="mw-heading mw-heading4"><h4 id="Major_deflations_in_the_United_States">Major deflations in the United States</h4></div>

There have been four significant periods of deflation in the United States.

The first and most severe was during the depression in 1818–1821 when prices of agricultural commodities declined by almost 50%. A credit contraction caused by a financial crisis in England drained specie out of the U.S. The Bank of the United States also contracted its lending. The price of agricultural commodities fell by almost 50% from the high in 1815 to the low in 1821, and did not recover until the late 1830s, although to a significantly lower price level. Most damaging was the price of cotton, the U.S.'s main export. Food crop prices, which had been high because of the famine of 1816 that was caused by the <a href="Year_without_a_summer" class="mw-redirect" title="Year without a summer">year without a summer</a>, fell after the return of normal harvests in 1818. Improved transportation, mainly from turnpikes, and to a minor extent the introduction of steamboats, significantly lowered transportation costs.<a href="#cite_note-Taylor_1951-28">[28]</a>

The second was the depression of the late 1830s to 1843, following the <a href="Panic_of_1837" title="Panic of 1837">Panic of 1837</a>, when the currency in the United States contracted by about 34% with prices falling by 33%. The magnitude of this contraction is only matched by the Great Depression.<a href="#cite_note-Atack1994-76">[76]</a> (See: <a href="#Historical_examples_of_credit_deflation">§ Historical examples of credit deflation</a>.) This "deflation" satisfies both definitions, that of a decrease in prices and a decrease in the available quantity of money. Despite the deflation and depression, GDP rose 16% from 1839 to 1843.<a href="#cite_note-Atack1994-76">[76]</a>

The third was after the <a href="United_States_Civil_War" class="mw-redirect" title="United States Civil War">Civil War</a>, sometimes called <a href="The_Great_Deflation" title="The Great Deflation">The Great Deflation</a>. It was possibly spurred by return to a gold standard, retiring paper money printed during the Civil War:

<blockquote class="templatequote">The Great Sag of 1873–96 could be near the top of the list. Its scope was global. It featured cost-cutting and productivity-enhancing technologies. It flummoxed the experts with its persistence, and it resisted attempts by politicians to understand it, let alone reverse it. It delivered a generation's worth of rising bond prices, as well as the usual losses to unwary creditors via defaults and early calls. Between 1875 and 1896, according to <a href="Milton_Friedman" title="Milton Friedman">Milton Friedman</a>, prices fell in the United States by 1.7% a year, and in Britain by 0.8% a year. </blockquote><div class="templatequotecite">— Grant's Interest Rate Observer, 10 March 2006<a href="#cite_note-77">[77]</a></div>

(Note: <a href="David_Ames_Wells" title="David Ames Wells">David A. Wells</a> (1890) gives an account of the period and discusses the great advances in productivity which Wells argues were the cause of the deflation. The productivity gains matched the deflation.<a href="#cite_note-78">[78]</a> Murray Rothbard (2002) gives a similar account.<a href="#cite_note-79">[79]</a>)

The fourth was in 1930–1933 when the rate of deflation was approximately 10 percent/year, part of the United States' slide into the <a href="Great_Depression" title="Great Depression">Great Depression</a>, where banks failed and <a href="Unemployment" title="Unemployment">unemployment</a> peaked at 25%.

The deflation of the Great Depression occurred partly because there was an enormous contraction of <a href="Credit_(finance)" class="mw-redirect" title="Credit (finance)">credit</a> (money), <a href="Bankruptcies" class="mw-redirect" title="Bankruptcies">bankruptcies</a> creating an environment where <a href="Monetary_base" title="Monetary base">cash</a> was in frantic demand, and when the <a href="Federal_Reserve" title="Federal Reserve">Federal Reserve</a> was supposed to accommodate that demand, it instead contracted the money supply by 30% in enforcement of its new <a href="Real_bills_doctrine" title="Real bills doctrine">real bills doctrine</a>, so banks failed one by one (because they were unable to meet the sudden demand for cash – see <a href="Bank_run" title="Bank run">Bank run</a>). From the standpoint of the <a href="Fisher_equation" title="Fisher equation">Fisher equation</a> (see above), there was a simultaneous drop both in money supply (credit) and the <a href="Velocity_of_money" title="Velocity of money">velocity of money</a> which was so profound that price deflation took hold despite the increases in money supply spurred by the Federal Reserve.

<div class="mw-heading mw-heading4"><h4 id="Minor_deflations_in_the_United_States">Minor deflations in the United States</h4></div>

Throughout the history of the United States, inflation has approached zero and dipped below for short periods of time. This was quite common in the 19th century, and in the 20th century until the permanent abandonment of the gold standard for the <a href="Bretton_Woods_system" title="Bretton Woods system">Bretton Woods system</a> in 1948. In the past 60 years, the United States has experienced deflation only two times; in 2009 with the Great Recession and in 2015, when the CPI barely broke below 0% at −0.1%.<a href="#cite_note-80">[80]</a>

Some economists believe the United States may have experienced deflation as part of the <a href="2008_financial_crisis" title="2008 financial crisis">2008 financial crisis</a>; compare the theory of <a href="Debt_deflation" title="Debt deflation">debt deflation</a>. Consumer prices dropped 1 percent in October 2008. This was the largest one-month fall in prices in the U.S. since at least 1947. That record was again broken in November 2008 with a 1.7% decline. In response, the <a href="Federal_Reserve" title="Federal Reserve">Federal Reserve</a> decided to continue cutting interest rates, down to a near-zero range as of December 16, 2008.<a href="#cite_note-81">[81]</a>

In late 2008 and early 2009, some economists feared the U.S. would enter a deflationary spiral. Economist <a href="Nouriel_Roubini" title="Nouriel Roubini">Nouriel Roubini</a> predicted that the United States would enter a deflationary recession, and coined the term "stag-deflation" to describe it.<a href="#cite_note-82">[82]</a> It was the opposite of <a href="Stagflation" title="Stagflation">stagflation</a>, which was the main fear during the spring and summer of 2008. The United States then began experiencing measurable deflation, steadily decreasing from the first measured deflation of −0.38% in March, to July's deflation rate of −2.10%. On the wage front, in October 2009, the state of <a href="Colorado" title="Colorado">Colorado</a> announced that its state <a href="Minimum_wage" title="Minimum wage">minimum wage</a>, which was indexed to inflation, was set to be cut, which would be the first time a state had cut its minimum wage since 1938.<a href="#cite_note-83">[83]</a>

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<ul><li><a href="Causes_of_the_Great_Depression" title="Causes of the Great Depression">Causes of the Great Depression</a></li>

<li><a href="Debt_deflation" title="Debt deflation">Debt deflation</a></li>

<li><a href="Degrowth" title="Degrowth">Degrowth</a></li>

<li><a href="Depopulation" class="mw-redirect" title="Depopulation">Depopulation</a></li>

<li><a href="Economic_inequality" title="Economic inequality">Economic inequality</a></li>

<li><a href="Great_Contraction" title="Great Contraction">Great Contraction</a></li>

<li><a href="Inflation_targeting" title="Inflation targeting">Inflation targeting</a></li>

<li><a href="Kondratiev_wave" title="Kondratiev wave">Kondratiev wave</a></li>

<li><a href="List_of_countries_by_inflation_rate" title="List of countries by inflation rate">List of countries by inflation rate</a></li>

<li><a href="Price_stability" title="Price stability">Price stability</a></li>

<li><a href="Underconsumption" title="Underconsumption">Underconsumption</a></li></ul>

</div>

<div class="mw-heading mw-heading2"><h2 id="Notes">Notes</h2></div>

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<li id="cite_note-1"><a href="#cite_ref-1">^</a> Robert J. Barro and Vittorio Grilli (1994), European Macroeconomics, chap. 8, p. 142. <style data-mw-deduplicate="TemplateStyles:r1238218222">

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</style><a href="ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <bdi>0-333-57764-7</bdi>

</li>

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<div class="mw-heading mw-heading2"><h2 id="References">References</h2></div>

<ul><li><a href="Nicola_Acocella" title="Nicola Acocella">Nicola Acocella</a>, The deflationary bias of exit strategies in the EMU countries, in: Review of economic conditions in Italy, 2-3: 471–93, (2011).</li>

<li>Ben S. Bernanke. <a rel="nofollow" class="external text" href="https://www.federalreserve.gov/BOARDDOCS/SPEECHES/2002/20021121/default.htm">Deflation: Making Sure "It" Doesn't Happen Here</a>. USA Federal Reserve Board. 2002-11-21. Accessed: 2008-10-17. (Archived by WebCite at <a rel="nofollow" class="external free" href="https://web.archive.org/web/20081024060408/http://www.federalreserve.gov/BOARDDOCS/SPEECHES/2002/20021121/default.htm">https://web.archive.org/web/20081024060408/http://www.federalreserve.gov/BOARDDOCS/SPEECHES/2002/20021121/default.htm</a></li>

<li>Michael Bordo & Andrew Filardo, Deflation and monetary policy in a historical perspective: Remembering the past or being condemned to repeat it?, In: Economic Policy, October 2005, pp. 799–844.</li>

<li>Georg Erber, The Risk of Deflation in Germany and the Monetary Policy of the ECB. In: Cesifo Forum 4 (2003), 3, pp. 24–29</li>

<li>Charles Goodhart and Boris Hofmann, Deflation, credit and asset prices, In: Deflation - Current and Historical Perspectives, eds. Richard C. K. Burdekin & Pierre L. Siklos, Cambridge University Press, Cambridge, 2004.</li>

<li>International Monetary Fund, Deflation: Determinants, Risks, and Policy Options - Findings of an Independent Task Force, Washington D. C., April 30, 2003.</li>

<li>International Monetary Fund, World Economic Outlook 2006 – Globalization and Inflation, Washington D. C., April 2006.</li>

<li>Otmar Issing, The euro after four years: is there a risk of deflation?, 16th European Finance Convention, 2 December 2002, London, Europäische Zentralbank, Frankfurt am Main</li>

<li>Steven B. Kamin, Mario Marazzi & John W. Schindler, Is China "Exporting Deflation"?, International Finance Discussion Papers No. 791, Board of Governors of the Federal Reserve System, Washington D. C. January 2004.</li>

<li><cite id="CITEREFKrugman1998" class="citation journal cs1">Krugman, Paul (1998). <a rel="nofollow" class="external text" href="https://www.brookings.edu/wp-content/uploads/1998/06/1998b_bpea_krugman_dominquez_rogoff.pdf">"Its Baaaaack: Japan's Slump and the Return of the Liquidity Trap"</a> (PDF). Brookings Papers on Economic Activity. 1998 (2): 137–205. <a href="Doi_(identifier)" class="mw-redirect" title="Doi (identifier)">doi</a>:<a rel="nofollow" class="external text" href="https://doi.org/10.2307%2F2534694">10.2307/2534694</a>. <a href="JSTOR_(identifier)" class="mw-redirect" title="JSTOR (identifier)">JSTOR</a> <a rel="nofollow" class="external text" href="https://www.jstor.org/stable/2534694">2534694</a>. <a rel="nofollow" class="external text" href="https://web.archive.org/web/20161203142431/https://www.brookings.edu/wp-content/uploads/1998/06/1998b_bpea_krugman_dominquez_rogoff.pdf">Archived</a> (PDF) from the original on 2016-12-03.</cite></li></ul>

<div class="mw-heading mw-heading2"><h2 id="External_links">External links</h2></div>

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<li><a rel="nofollow" class="external text" href="http://www.imf.org/external/pubs/ft/wp/2009/wp0997.pdf">Why Are Japanese Wages So Sluggish? IMF Working paper</a></li></ul>

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</style></div><div role="navigation" class="navbox" aria-labelledby="Economics681" style="padding:3px"><table class="nowraplinks hlist mw-collapsible mw-collapsed navbox-inner" style="border-spacing:0;background:transparent;color:inherit"><tbody><tr><th scope="col" class="navbox-title" colspan="2"><div id="Economics681" style="font-size:114%;margin:0 4em"><a href="Economics" title="Economics">Economics</a></div></th></tr><tr><th scope="row" class="navbox-group" style="width:1%"><a href="Economics#Theoretical_research" title="Economics">Theoretical</a></th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em">

<ul><li><a href="Microeconomics" title="Microeconomics">Microeconomics</a>

<ul><li><a href="Decision_theory" title="Decision theory">Decision theory</a></li>

<li><a href="Price_theory" class="mw-redirect" title="Price theory">Price theory</a></li>

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<li><a href="Contract_theory" title="Contract theory">Contract theory</a></li>

<li><a href="Mechanism_design" title="Mechanism design">Mechanism design</a></li></ul></li>

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<li><a href="Mathematical_economics" title="Mathematical economics">Mathematical economics</a></li>

<li><a href="Complexity_economics" title="Complexity economics">Complexity economics</a></li>

<li><a href="Computational_economics" title="Computational economics">Computational economics</a>

<ul><li><a href="Agent-based_computational_economics" title="Agent-based computational economics">Agent-based computational economics</a></li></ul></li>

<li><a href="Behavioral_economics" title="Behavioral economics">Behavioral economics</a></li>

<li><a href="Pluralism_in_economics" title="Pluralism in economics">Pluralism in economics</a></li></ul>

</div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%"><a href="Economics#Empirical_research" title="Economics">Empirical</a></th><td class="navbox-list-with-group navbox-list navbox-even" style="width:100%;padding:0"><div style="padding:0 0.25em">

<ul><li><a href="Econometrics" title="Econometrics">Econometrics</a>

<ul><li><a href="Economic_statistics" title="Economic statistics">Economic statistics</a></li></ul></li>

<li><a href="Experimental_economics" title="Experimental economics">Experimental economics</a></li>

<li><a href="Economic_history" title="Economic history">Economic history</a></li></ul>

</div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%"><a href="Applied_economics" title="Applied economics">Applied</a></th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em">

<ul><li><a href="Agricultural_economics" title="Agricultural economics">Agriculture</a></li>

<li><a href="Business_economics" title="Business economics">Business</a></li>

<li><a href="Cultural_economics" title="Cultural economics">Cultural</a></li>

<li><a href="Demographic_economics" title="Demographic economics">Demographic</a></li>

<li><a href="Development_economics" title="Development economics">Development</a></li>

<li><a href="Ecological_economics" title="Ecological economics">Ecological</a></li>

<li><a href="Education_economics" title="Education economics">Education</a></li>

<li><a href="Engineering_economics" title="Engineering economics">Engineering</a></li>

<li><a href="Environmental_economics" title="Environmental economics">Environmental</a></li>

<li><a href="Evolutionary_economics" title="Evolutionary economics">Evolutionary</a></li>

<li><a href="Financial_economics" title="Financial economics">Financial</a></li>

<li><a href="Economic_geography" title="Economic geography">Geographic</a></li>

<li><a href="Happiness_economics" title="Happiness economics">Happiness</a></li>

<li><a href="Health_economics" title="Health economics">Health</a></li>

<li><a href="Economic_history" title="Economic history">History</a></li>

<li><a href="Information_economics" title="Information economics">Information</a></li>

<li><a href="Infrastructure_and_economics" title="Infrastructure and economics">Infrastructure</a></li>

<li><a href="Institutional_economics" title="Institutional economics">Institutions</a></li>

<li><a href="Labour_economics" title="Labour economics">Labour</a></li>

<li><a href="Managerial_economics" title="Managerial economics">Management</a></li>

<li><a href="Non-monetary_economy" title="Non-monetary economy">Non-monetary</a></li>

<li><a href="Organizational_economics" title="Organizational economics">Organization</a></li>

<li><a href="Economics_of_participation" title="Economics of participation">Participation</a></li>

<li><a href="Personnel_economics" title="Personnel economics">Personnel</a></li>

<li><a href="Economic_planning" title="Economic planning">Planning</a></li>

<li><a href="Economic_policy" title="Economic policy">Policy</a></li>

<li><a href="Public_economics" title="Public economics">Public sector</a></li>

<li><a href="Public_choice" title="Public choice">Public choice</a></li>

<li><a href="Social_choice" class="mw-redirect" title="Social choice">Social choice</a></li>

<li><a href="Regional_economics" title="Regional economics">Regional</a></li>

<li><a href="Regulatory_economics" title="Regulatory economics">Regulatory</a></li>

<li><a href="Natural_resource_economics" title="Natural resource economics">Resources</a></li>

<li><a href="Rural_economics" title="Rural economics">Rural</a></li>

<li><a href="Service_economy" title="Service economy">Service</a></li>

<li><a href="Transport_economics" title="Transport economics">Transport</a></li>

<li><a href="Urban_economics" title="Urban economics">Urban</a></li>

<li><a href="Welfare_economics" title="Welfare economics">Welfare</a></li></ul></div></div>

</div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%"><div style="display: inline-block; line-height: 1.2em; padding: .1em 0;"><a href="Schools_of_economic_thought" title="Schools of economic thought">Schools</a> (<a href="History_of_economic_thought" title="History of economic thought">history</a>) </div></th><td class="navbox-list-with-group navbox-list navbox-even" style="width:100%;padding:0"><div style="padding:0 0.25em">

<ul><li><a href="Attention_economy" title="Attention economy">Attention</a></li>

<li><a href="Mainstream_economics" title="Mainstream economics">Mainstream</a></li>

<li><a href="Heterodox_economics" title="Heterodox economics">Heterodox</a></li>

<li><a href="American_School_(economics)" title="American School (economics)">American (National)</a></li>

<li><a href="Ancient_economic_thought" title="Ancient economic thought">Ancient thought</a></li>

<li><a href="Austrian_School" class="mw-redirect" title="Austrian School">Austrian</a></li>

<li><a href="Behavioral_economics" title="Behavioral economics">Behavioral</a></li>

<li><a href="Buddhist_economics" title="Buddhist economics">Buddhist</a></li>

<li><a href="Chartalism" title="Chartalism">Chartalism</a>

<ul><li><a href="Modern_monetary_theory" title="Modern monetary theory">Modern monetary theory</a></li></ul></li>

<li><a href="Chicago_school_of_economics" title="Chicago school of economics">Chicago</a></li>

<li><a href="Classical_economics" title="Classical economics">Classical</a></li>

<li><a href="Critique_of_political_economy" title="Critique of political economy">Critique of political economy</a></li>

<li><a href="Economic_democracy" title="Economic democracy">Democratic</a></li>

<li><a href="Disequilibrium_macroeconomics" title="Disequilibrium macroeconomics">Disequilibrium</a></li>

<li><a href="Ecological_economics" title="Ecological economics">Ecological</a></li>

<li><a href="Evolutionary_economics" title="Evolutionary economics">Evolutionary</a></li>

<li><a href="Feminist_economics" title="Feminist economics">Feminist</a></li>

<li><a href="Freiwirtschaft" title="Freiwirtschaft">Freiwirtschaft</a></li>

<li><a href="Georgism" title="Georgism">Georgism</a></li>

<li><a href="Happiness_economics" title="Happiness economics">Happiness</a></li>

<li><a href="Historical_school_of_economics" title="Historical school of economics">Historical</a></li>

<li><a href="Humanistic_economics" title="Humanistic economics">Humanistic</a></li>

<li><a href="Institutional_economics" title="Institutional economics">Institutional</a></li>

<li><a href="Keynesian_economics" title="Keynesian economics">Keynesian</a>

<ul><li><a href="Neo-Keynesian_economics" class="mw-redirect" title="Neo-Keynesian economics">Neo-</a> (<a href="Neoclassical_synthesis" title="Neoclassical synthesis">neoclassical–Keynesian synthesis</a>)</li>

<ul><li><a href="Monetary_circuit_theory" title="Monetary circuit theory">Circuitism</a></li></ul></li></ul></li>

<li><a href="Malthusianism" title="Malthusianism">Malthusianism</a></li>

<li><a href="Marginalism" title="Marginalism">Marginalism</a></li>

<li><a href="Marxian_economics" title="Marxian economics">Marxian</a>

<li><a href="Mercantilism" title="Mercantilism">Mercantilism</a></li>

<li><a href="Mixed_economy" title="Mixed economy">Mixed</a></li>

<li><a href="Mutualism_(economic_theory)" title="Mutualism (economic theory)">Mutualism</a></li>

<li><a href="Neoclassical_economics" title="Neoclassical economics">Neoclassical</a>

<ul><li><a href="Lausanne_School" title="Lausanne School">Lausanne</a></li></ul></li>

<li><a href="New_classical_macroeconomics" title="New classical macroeconomics">New classical</a>

<ul><li><a href="Real_business-cycle_theory" title="Real business-cycle theory">Real business-cycle theory</a></li></ul></li>

<li><a href="New_institutional_economics" title="New institutional economics">New institutional</a></li>

<li><a href="Physiocracy" title="Physiocracy">Physiocracy</a></li>

<li><a href="Socialist_economics" title="Socialist economics">Socialist</a></li>

<li><a href="Stockholm_School_(economics)" title="Stockholm School (economics)">Stockholm</a></li>

<li><a href="Supply-side_economics" title="Supply-side economics">Supply-side</a></li>

<li><a href="Thermoeconomics" title="Thermoeconomics">Thermo</a></li></ul>

</div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%"><div style="display: inline-block; line-height: 1.2em; padding: .1em 0;"><a href="Economist" title="Economist">Economists</a> </div></th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em">

<ul><li><a href="Bernard_de_Mandeville" class="mw-redirect" title="Bernard de Mandeville">de Mandeville</a></li>

<li><a href="Fran%C3%A7ois_Quesnay" title="François Quesnay">Quesnay</a></li>

<li><a href="Adam_Smith" title="Adam Smith">Smith</a></li>

<li><a href="Thomas_Robert_Malthus" title="Thomas Robert Malthus">Malthus</a></li>

<li><a href="David_Ricardo" title="David Ricardo">Ricardo</a></li>

<li><a href="Johann_Heinrich_von_Th%C3%BCnen" title="Johann Heinrich von Thünen">von Thünen</a></li>

<li><a href="Fr%C3%A9d%C3%A9ric_Bastiat" title="Frédéric Bastiat">Bastiat</a></li>

<li><a href="Antoine_Augustin_Cournot" title="Antoine Augustin Cournot">Cournot</a></li>

<li><a href="Hermann_Heinrich_Gossen" title="Hermann Heinrich Gossen">Gossen</a></li>

<li><a href="L%C3%A9on_Walras" title="Léon Walras">Walras</a></li>

<li><a href="William_Stanley_Jevons" title="William Stanley Jevons">Jevons</a></li>

<li><a href="Henry_George" title="Henry George">George</a></li>

<li><a href="Carl_Menger" title="Carl Menger">Menger</a></li>

<li><a href="Alfred_Marshall" title="Alfred Marshall">Marshall</a></li>

<li><a href="Francis_Ysidro_Edgeworth" title="Francis Ysidro Edgeworth">Edgeworth</a></li>

<li><a href="John_Bates_Clark" title="John Bates Clark">Clark</a></li>

<li><a href="Vilfredo_Pareto" title="Vilfredo Pareto">Pareto</a></li>

<li><a href="Eugen_von_B%C3%B6hm-Bawerk" title="Eugen von Böhm-Bawerk">von Böhm-Bawerk</a></li>

<li><a href="Friedrich_von_Wieser" title="Friedrich von Wieser">von Wieser</a></li>

<li><a href="Thorstein_Veblen" title="Thorstein Veblen">Veblen</a></li>

<li><a href="Silvio_Gesell" title="Silvio Gesell">Gesell</a></li>

<li><a href="Irving_Fisher" title="Irving Fisher">Fisher</a></li>

<li><a href="Arthur_Cecil_Pigou" title="Arthur Cecil Pigou">Pigou</a></li>

<li><a href="Eli_Heckscher" title="Eli Heckscher">Heckscher</a></li>

<li><a href="Ludwig_von_Mises" title="Ludwig von Mises">von Mises</a></li>

<li><a href="Joseph_Schumpeter" title="Joseph Schumpeter">Schumpeter</a></li>

<li><a href="John_Maynard_Keynes" title="John Maynard Keynes">Keynes</a></li>

<li><a href="Frank_Knight" title="Frank Knight">Knight</a></li>

<li><a href="Karl_Polanyi" title="Karl Polanyi">Polanyi</a></li>

<li><a href="Ragnar_Frisch" title="Ragnar Frisch">Frisch</a></li>

<li><a href="Piero_Sraffa" title="Piero Sraffa">Sraffa</a></li>

<li><a href="Gunnar_Myrdal" title="Gunnar Myrdal">Myrdal</a></li>

<li><a href="Friedrich_Hayek" title="Friedrich Hayek">Hayek</a></li>

<li><a href="Micha%C5%82_Kalecki" title="Michał Kalecki">Kalecki</a></li>

<li><a href="Wilhelm_R%C3%B6pke" title="Wilhelm Röpke">Röpke</a></li>

<li><a href="Simon_Kuznets" title="Simon Kuznets">Kuznets</a></li>

<li><a href="Jan_Tinbergen" title="Jan Tinbergen">Tinbergen</a></li>

<li><a href="Joan_Robinson" title="Joan Robinson">Robinson</a></li>

<li><a href="John_von_Neumann" title="John von Neumann">von Neumann</a></li>

<li><a href="John_Hicks" title="John Hicks">Hicks</a></li>

<li><a href="Oskar_R._Lange" title="Oskar R. Lange">Lange</a></li>

<li><a href="Wassily_Leontief" title="Wassily Leontief">Leontief</a></li>

<li><a href="John_Kenneth_Galbraith" title="John Kenneth Galbraith">Galbraith</a></li>

<li><a href="Tjalling_Koopmans" title="Tjalling Koopmans">Koopmans</a></li>

<li><a href="E._F._Schumacher" title="E. F. Schumacher">Schumacher</a></li>

<li><a href="Milton_Friedman" title="Milton Friedman">Friedman</a></li>

<li><a href="Paul_Samuelson" title="Paul Samuelson">Samuelson</a></li>

<li><a href="Herbert_A._Simon" title="Herbert A. Simon">Simon</a></li>

<li><a href="James_M._Buchanan" title="James M. Buchanan">Buchanan</a></li>

<li><a href="Kenneth_Arrow" title="Kenneth Arrow">Arrow</a></li>

<li><a href="William_Baumol" title="William Baumol">Baumol</a></li>

<li><a href="Robert_Solow" title="Robert Solow">Solow</a></li>

<li><a href="Murray_Rothbard" title="Murray Rothbard">Rothbard</a></li>

<li><a href="Alan_Greenspan" title="Alan Greenspan">Greenspan</a></li>

<li><a href="Thomas_Sowell" title="Thomas Sowell">Sowell</a></li>

<li><a href="Gary_Becker" title="Gary Becker">Becker</a></li>

<li><a href="Elinor_Ostrom" title="Elinor Ostrom">Ostrom</a></li>

<li><a href="Robert_Lucas_Jr." title="Robert Lucas Jr.">Lucas</a></li>

<li><a href="Joseph_Stiglitz" title="Joseph Stiglitz">Stiglitz</a></li>

<li><a href="Richard_Thaler" title="Richard Thaler">Thaler</a></li>

<li><a href="Hans-Hermann_Hoppe" title="Hans-Hermann Hoppe">Hoppe</a></li>

<li><a href="Paul_Krugman" title="Paul Krugman">Krugman</a></li>

<li><a href="Thomas_Piketty" title="Thomas Piketty">Piketty</a></li>

</div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Lists</th><td class="navbox-list-with-group navbox-list navbox-even" style="width:100%;padding:0"><div style="padding:0 0.25em">

<ul><li><a href="Glossary_of_economics" title="Glossary of economics">Glossary</a></li>

<li><a href="List_of_economists" title="List of economists">Economists</a></li>

<li><a href="List_of_important_publications_in_economics" class="mw-redirect" title="List of important publications in economics">Publications</a> (<a href="List_of_economics_journals" title="List of economics journals">journals</a>)</li>

<li><a href="Schools_of_economic_thought" title="Schools of economic thought">Schools</a></li></ul>

</div></td></tr><tr><td class="navbox-abovebelow" colspan="2"><div>

<ul><li>Category</li>

<li><a href="Index_of_economics_articles" title="Index of economics articles">Index</a></li>

<li>Lists</li>

<li><a href="Outline_of_economics" title="Outline of economics">Outline</a></li>

<li><a href="List_of_important_publications_in_economics" class="mw-redirect" title="List of important publications in economics">Publications</a></li>

<li><a href="Portal%3ABusiness" title="Portal:Business">Business portal</a></li></ul>

</div></td></tr></tbody></table></div>

<div class="navbox-styles"></div><div role="navigation" class="navbox" aria-labelledby="Economic_history_of_the_United_States_and_Commonwealth_of_Nations_countries663" style="padding:3px"><table class="nowraplinks hlist mw-collapsible mw-collapsed navbox-inner" style="border-spacing:0;background:transparent;color:inherit"><tbody><tr><th scope="col" class="navbox-title" colspan="2"><div id="Economic_history_of_the_United_States_and_Commonwealth_of_Nations_countries663" style="font-size:114%;margin:0 4em"><a href="Economic_history_of_the_United_States" title="Economic history of the United States">Economic history of the United States</a> and <a href="Member_states_of_the_Commonwealth_of_Nations" title="Member states of the Commonwealth of Nations">Commonwealth of Nations countries</a></div></th></tr><tr><th scope="row" class="navbox-group" style="width:1%"><a href="Commercial_revolution" title="Commercial revolution">Commercial revolution</a> (1000–1760)</th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em">

<ul><li><a href="Great_Slump_(15th_century)" title="Great Slump (15th century)">Great Slump</a> (1430–1490)</li>

<li><a href="Financial_Revolution" title="Financial Revolution">Financial Revolution</a> (1690–1800)</li>

<li><a href="War_of_the_Spanish_Succession" title="War of the Spanish Succession">Slump of 1706</a></li>

<li><a href="Great_Frost_of_1709" title="Great Frost of 1709">Great Frost of 1709</a></li></ul>

</div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%"><a href="Industrial_Revolution" title="Industrial Revolution">1st Industrial Revolution</a>/ <a href="Market_Revolution" title="Market Revolution">Market Revolution</a> (1760–1870)</th><td class="navbox-list-with-group navbox-list navbox-even" style="width:100%;padding:0"><div style="padding:0 0.25em">

<ul><li><a href="British_credit_crisis_of_1772%E2%80%931773" title="British credit crisis of 1772–1773">British credit crisis of 1772–1773</a>

<ul><li>1772–1774; <a href="British_credit_crisis_of_1772%E2%80%931773#Effects_in_London" title="British credit crisis of 1772–1773">England</a></li>

<li><a href="British_credit_crisis_of_1772%E2%80%931773#Scotland" title="British credit crisis of 1772–1773">Scotland</a></li>

<li><a href="British_credit_crisis_of_1772%E2%80%931773" title="British credit crisis of 1772–1773">American Colonies</a></li></ul></li>

<li><a href="List_of_recessions_in_the_United_States#Early_recessions_and_crises_(1785–1836)" title="List of recessions in the United States">Panic of 1785</a> (1785–1788)</li>

<li><a href="Copper_Panic_of_1789" title="Copper Panic of 1789">Copper Panic of 1789</a>/<a href="Panic_of_1792" title="Panic of 1792">Panic of 1792</a> (1789–1793)</li>

<li><a href="Panic_of_1796%E2%80%931797" title="Panic of 1796–1797">Panic of 1796–1797</a> (1796–1799)</li>

<li><a href="List_of_recessions_in_the_United_States#Early_recessions_and_crises_(1785–1836)" title="List of recessions in the United States">1802–1804 recession</a></li>

<li><a href="List_of_recessions_in_the_United_States#Early_recessions_and_crises_(1785–1836)" title="List of recessions in the United States">Depression of 1807</a> (1807–1810)</li>

<li><a href="List_of_recessions_in_the_United_States#Early_recessions_and_crises_(1785–1836)" title="List of recessions in the United States">1812 recession</a></li>

<li><a href="Post-Napoleonic_Depression" title="Post-Napoleonic Depression">Post-Napoleonic Depression</a> (1815–1821)</li>

<li><a href="List_of_recessions_in_the_United_States#Early_recessions_and_crises_(1785–1836)" title="List of recessions in the United States">1822–23 recession</a></li>

<li><a href="Panic_of_1825" title="Panic of 1825">Panic of 1825</a> (1825–1826)</li>

<li><a href="List_of_recessions_in_the_United_States#Early_recessions_and_crises_(1785–1836)" title="List of recessions in the United States">1828–29 recession</a></li>

<li><a href="List_of_recessions_in_the_United_States#Early_recessions_and_crises_(1785–1836)" title="List of recessions in the United States">1833–34 recession</a></li>

<li><a href="Panic_of_1837" title="Panic of 1837">Panic of 1837</a> (1836–1838 and 1839–1843)</li>

<li><a href="List_of_recessions_in_the_United_States#Free_Banking_Era_to_the_Great_Depression_(1836–1929)" title="List of recessions in the United States">1845–46 recession</a></li>

<li><a href="Panic_of_1847" title="Panic of 1847">Panic of 1847</a> (1847–1848)</li>

<li><a href="List_of_recessions_in_the_United_States#Free_Banking_Era_to_the_Great_Depression_(1836–1929)" title="List of recessions in the United States">1853–54 recession</a></li>

<li><a href="Panic_of_1857" title="Panic of 1857">Panic of 1857</a> (1857–1858)</li>

<li><a href="List_of_recessions_in_the_United_States#Free_Banking_Era_to_the_Great_Depression_(1836–1929)" title="List of recessions in the United States">1860–61 recession</a></li>

<li><a href="Economic_history_of_the_American_Civil_War" title="Economic history of the American Civil War">U.S. Civil War economy</a> (1861–1865)</li>

<li><a href="Panic_of_1866" title="Panic of 1866">Panic of 1866</a> (1865–1867)</li>

<li><a href="Black_Friday_(1869)" title="Black Friday (1869)">Black Friday</a> (1869–1870)</li></ul>

</div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%"><a href="Gilded_Age" title="Gilded Age">Gilded Age</a>/ <a href="Second_Industrial_Revolution" title="Second Industrial Revolution">2nd Industrial Revolution</a> (1870–1914)</th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em">

<ul><li><a href="Long_Depression" title="Long Depression">Long Depression</a>/<a href="The_Great_Deflation" title="The Great Deflation">Great Deflation</a>

<ul><li>1873–1879; <a href="Long_Depression#United_Kingdom" title="Long Depression">United Kingdom</a></li>

<li><a href="Long_Depression#United_States" title="Long Depression">United States</a></li></ul></li>

<li><a href="Depression_of_1882%E2%80%931885" title="Depression of 1882–1885">Depression of 1882–1885</a></li>

<li><a href="List_of_recessions_in_the_United_States#Free_Banking_Era_to_the_Great_Depression_(1836–1929)" title="List of recessions in the United States">1887–88 recession</a></li>

<li><a href="Baring_crisis" title="Baring crisis">Baring crisis</a> (1890–1891)</li>

<li><a href="Panic_of_1893" title="Panic of 1893">Panic of 1893</a> (1893–1897)</li>

<li><a href="List_of_recessions_in_the_United_States#Free_Banking_Era_to_the_Great_Depression_(1836–1929)" title="List of recessions in the United States">1899–1900 recession</a></li>

<li><a href="Panic_of_1901" title="Panic of 1901">Panic of 1901</a> (1902–1904)</li>

<li><a href="Panic_of_1907" title="Panic of 1907">Panic of 1907</a> (1907–1908)</li>

<li><a href="Panic_of_1910%E2%80%9311" title="Panic of 1910–11">Panic of 1910–11</a> (1910–1912)</li>

<li><a href="Financial_crisis_of_1914" title="Financial crisis of 1914">Financial crisis of 1914</a> (1913–14)</li></ul>

</div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">World War home fronts/ <a href="Interwar_period" title="Interwar period">Interwar period</a> (1914–1945)</th><td class="navbox-list-with-group navbox-list navbox-even" style="width:100%;padding:0"><div style="padding:0 0.25em">

<ul><li><a href="Home_front_during_World_War_I" title="Home front during World War I">World War I home front</a>

<ul><li><a href="Australia_in_World_War_I#Home_front" title="Australia in World War I">Australia</a></li>

<li><a href="Canada_in_World_War_I#Home_Front" title="Canada in World War I">Canada</a></li>

<li><a href="History_of_the_United_Kingdom_during_the_First_World_War" title="History of the United Kingdom during the First World War">United Kingdom</a></li>

<li><a href="United_States_home_front_during_World_War_I" title="United States home front during World War I">United States</a></li></ul></li>

<li><a href="Post%E2%80%93World_War_I_recession" title="Post–World War I recession">Post–World War I recession</a> (1918–1919)</li>

<li><a href="Recession_of_1920%E2%80%931921" title="Recession of 1920–1921">Recession of 1920–1921</a></li>

<li><a href="Roaring_Twenties" title="Roaring Twenties">Roaring Twenties</a></li>

<li><a href="List_of_recessions_in_the_United_States#Free_Banking_Era_to_the_Great_Depression_(1836–1929)" title="List of recessions in the United States">1923–1924 recession</a></li>

<li><a href="List_of_recessions_in_the_United_States#Free_Banking_Era_to_the_Great_Depression_(1836–1929)" title="List of recessions in the United States">1926–1927 recession</a></li>

<li><a href="Great_Depression" title="Great Depression">Great Depression</a>

<ul><li>1929–1939; <a href="Great_Depression_in_Australia" title="Great Depression in Australia">Australia</a></li>

<li><a href="Great_Depression_in_Canada" title="Great Depression in Canada">Canada</a></li>

<li><a href="Great_Depression_in_India" title="Great Depression in India">India</a></li>

<li><a href="Great_Depression_in_South_Africa" title="Great Depression in South Africa">South Africa</a></li>

<li><a href="Great_Depression_in_the_United_Kingdom" title="Great Depression in the United Kingdom">United Kingdom</a></li>

<li><a href="Great_Depression_in_the_United_States" title="Great Depression in the United States">United States</a></li></ul></li>

<li><a href="Recession_of_1937%E2%80%931938" title="Recession of 1937–1938">Recession of 1937–1938</a></li>

<li><a href="Home_front_during_World_War_II" title="Home front during World War II">World War II home front</a>

<ul><li><a href="Australian_home_front_during_World_War_II" title="Australian home front during World War II">Australia</a></li>

<li><a href="Canada_in_World_War_II#Home_front" title="Canada in World War II">Canada</a></li>

<li><a href="British_home_front_during_World_War_II" title="British home front during World War II">United Kingdom</a></li>

<li><a href="United_States_home_front_during_World_War_II" title="United States home front during World War II">United States</a></li></ul></li></ul>

</div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%"><a href="Post%E2%80%93World_War_II_economic_expansion" title="Post–World War II economic expansion">Post–WWII expansion</a>/ <a href="Stagflation" title="Stagflation">1970s stagflation</a> (1945–1982)</th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em">

<ul><li><a href="List_of_recessions_in_the_United_States#Great_Depression_onward_(1929–present)" title="List of recessions in the United States">1945 recession</a></li>

<li><a href="Recession_of_1949" title="Recession of 1949">Recession of 1949</a> (1948–1949)</li>

<li><a href="Four_Asian_Tigers" title="Four Asian Tigers">Hong Kong and Singapore Asian Tiger expansions</a> (1950–1990)</li>

<li><a href="List_of_recessions_in_Canada" title="List of recessions in Canada">Recession of 1951</a></li>

<li><a href="Recession_of_1953" title="Recession of 1953">Recession of 1953</a> (1953–1954)</li>

<li><a href="Recession_of_1958" title="Recession of 1958">Recession of 1958</a> (1957–1958)</li>

<li><a href="Recession_of_1960%E2%80%931961" title="Recession of 1960–1961">Recession of 1960–1961</a></li>

<li><a href="Recession_of_1969%E2%80%931970" title="Recession of 1969–1970">Recession of 1969–1970</a></li>

<li><a href="1973%E2%80%931975_recession" title="1973–1975 recession">1973–1975 recession</a>

<ul><li><a href="1973%E2%80%931975_recession#United_Kingdom" title="1973–1975 recession">United Kingdom</a></li>

<li><a href="1973%E2%80%931975_recession#United_States" title="1973–1975 recession">United States</a></li></ul></li>

<li><a href="Early_1980s_recession" title="Early 1980s recession">Early 1980s recession</a>

<ul><li>1980–1982; <a href="Early_1980s_recession#Canada" title="Early 1980s recession">Canada</a></li>

<li><a href="Early_1980s_recession#United_Kingdom" title="Early 1980s recession">United Kingdom</a></li>

<li><a href="Early_1980s_recession_in_the_United_States" title="Early 1980s recession in the United States">United States</a></li></ul></li></ul>

</div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%"><a href="Information_Age" title="Information Age">Computer Age</a>/ <a href="Second_Gilded_Age" title="Second Gilded Age">Second Gilded Age</a> (1982–present)</th><td class="navbox-list-with-group navbox-list navbox-even" style="width:100%;padding:0"><div style="padding:0 0.25em">

<ul><li><a href="Great_Moderation" title="Great Moderation">Great Moderation</a> (1982–2007)</li>

<li><a href="Early_1990s_recession" title="Early 1990s recession">Early 1990s recession</a>

<ul><li>1990–1991; <a href="Early_1990s_recession_in_Australia" title="Early 1990s recession in Australia">Australia</a></li>

<li><a href="Early_1990s_recession#Canada" title="Early 1990s recession">Canada</a></li>

<li><a href="Early_1990s_recession#United_Kingdom" title="Early 1990s recession">United Kingdom</a></li>

<li><a href="Early_1990s_recession_in_the_United_States" title="Early 1990s recession in the United States">United States</a></li></ul></li>

<li><a href="1990s_United_States_boom" title="1990s United States boom">1990s United States boom</a></li>

<li><a href="Economic_liberalisation_in_India" title="Economic liberalisation in India">1990s India economic boom</a></li>

<li><a href="1997_Asian_financial_crisis" title="1997 Asian financial crisis">1997 Asian financial crisis</a></li>

<li><a href="Early_2000s_recession" title="Early 2000s recession">Early 2000s recession</a> (2001)</li>

<li><a href="Great_Recession" title="Great Recession">Great Recession</a>

<ul><li>2007–2009; <a href="Great_Recession_in_Oceania#Australia" title="Great Recession in Oceania">Australia</a></li>

<li><a href="Great_Recession_in_Asia#Bangladesh" title="Great Recession in Asia">Bangladesh</a></li>

<li><a href="Great_Recession_in_the_Americas#Canada" title="Great Recession in the Americas">Canada</a></li>

<li><a href="Great_Recession_in_Asia#India" title="Great Recession in Asia">India</a></li>

<li><a href="Great_Recession_in_Asia#Malysia" title="Great Recession in Asia">Malaysia</a></li>

<li><a href="Great_Recession_in_Oceania#New_Zealand" title="Great Recession in Oceania">New Zealand</a></li>

<li><a href="Great_Recession_in_Asia#Pakistan" title="Great Recession in Asia">Pakistan</a></li>

<li><a href="Great_Recession_in_Africa" title="Great Recession in Africa">South Africa</a></li>

<li><a href="Great_Recession_in_Asia#Sri_Lanka" title="Great Recession in Asia">Sri Lanka</a></li>

<li><a href="Great_Recession_in_Europe#United_Kingdom" title="Great Recession in Europe">United Kingdom</a></li>

<li><a href="Great_Recession_in_the_United_States" title="Great Recession in the United States">United States</a></li></ul></li>

<li><a href="Tiger_Cub_Economies" title="Tiger Cub Economies">Malaysia Tiger Cub expansion</a> (2010s)</li>

<li><a href="COVID-19_recession" title="COVID-19 recession">COVID-19 recession</a>

<ul><li>2020–2022; <a href="COVID-19_recession#Australia" title="COVID-19 recession">Australia</a></li>

<li><a href="COVID-19_recession#Bangladesh" title="COVID-19 recession">Bangladesh</a></li>

<li><a href="COVID-19_recession#Belize" title="COVID-19 recession">Belize</a></li>

<li><a href="COVID-19_recession#Botswana" title="COVID-19 recession">Botswana</a></li>

<li><a href="Economic_impact_of_the_COVID-19_pandemic_in_Canada" title="Economic impact of the COVID-19 pandemic in Canada">Canada</a></li>

<li><a href="Economic_impact_of_the_COVID-19_pandemic_in_India" title="Economic impact of the COVID-19 pandemic in India">India</a></li>

<li><a href="Economic_impact_of_the_COVID-19_pandemic_in_Malaysia" title="Economic impact of the COVID-19 pandemic in Malaysia">Malaysia</a></li>

<li><a href="COVID-19_recession#Namibia" title="COVID-19 recession">Namibia</a></li>

<li><a href="Economic_impact_of_the_COVID-19_pandemic_in_New_Zealand" title="Economic impact of the COVID-19 pandemic in New Zealand">New Zealand</a></li>

<li><a href="COVID-19_pandemic_in_Singapore#Economic_impact" title="COVID-19 pandemic in Singapore">Singapore</a></li>

<li><a href="Economic_impact_of_the_COVID-19_pandemic_in_the_United_Kingdom" title="Economic impact of the COVID-19 pandemic in the United Kingdom">United Kingdom</a></li>

<li><a href="Economic_impact_of_the_COVID-19_pandemic_in_the_United_States" title="Economic impact of the COVID-19 pandemic in the United States">United States</a></li>

<li><a href="COVID-19_recession#Zambia" title="COVID-19 recession">Zambia</a></li></ul></li>

<li><a href="List_of_recessions_in_the_United_Kingdom" title="List of recessions in the United Kingdom">2023 recession</a></li></ul>

</div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Countries and sectors</th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em">

<ul><li><a href="Economic_history_of_Australia" title="Economic history of Australia">Australia</a></li>

<li><a href="Economic_history_of_Canada" title="Economic history of Canada">Canada</a>

<ul><li><a href="History_of_agriculture_in_Canada" title="History of agriculture in Canada">agriculture</a></li>

<li><a href="History_of_Canadian_currencies" title="History of Canadian currencies">currencies</a></li>

<li><a href="Early_Canadian_banking_system" title="Early Canadian banking system">early banking system</a></li>

<li><a href="List_of_recessions_in_Canada" title="List of recessions in Canada">list of recessions</a></li>

<li><a href="History_of_the_petroleum_industry_in_Canada" title="History of the petroleum industry in Canada">petroleum industry</a></li>

<li><a href="Technological_and_industrial_history_of_Canada" title="Technological and industrial history of Canada">technological and industrial</a></li></ul></li>

<li><a href="Economic_history_of_Ghana" title="Economic history of Ghana">Ghana</a></li>

<li><a href="Economic_history_of_India" title="Economic history of India">India</a>

<ul><li><a href="History_of_agriculture_in_the_Indian_subcontinent" title="History of agriculture in the Indian subcontinent">agriculture</a></li>

<li><a href="Economy_of_India_under_Company_rule" title="Economy of India under Company rule">Company rule</a></li>

<li><a href="Economy_of_India_under_the_British_Raj" title="Economy of India under the British Raj">British Raj</a></li>

<li><a href="De-industrialisation_of_India" title="De-industrialisation of India">Deindustrialisation</a></li></ul></li>

<li><a href="Economic_history_of_Malaysia" title="Economic history of Malaysia">Malaysia</a></li>

<li><a href="Economic_history_of_New_Zealand" title="Economic history of New Zealand">New Zealand</a></li>

<li><a href="Economic_history_of_Nigeria" title="Economic history of Nigeria">Nigeria</a></li>

<li><a href="Economic_history_of_Pakistan" title="Economic history of Pakistan">Pakistan</a></li>

<li><a href="Economic_history_of_South_Africa" title="Economic history of South Africa">South Africa</a></li>

<li><a href="Economic_history_of_Uganda" title="Economic history of Uganda">Uganda</a></li>

<li><a href="Economic_history_of_the_United_Kingdom" title="Economic history of the United Kingdom">United Kingdom</a>

<ul><li><a href="British_Agricultural_Revolution" title="British Agricultural Revolution">Agricultural Revolution</a></li>

<li><a href="History_of_banking_in_the_United_Kingdom" title="History of banking in the United Kingdom">history of banking</a></li>

<li><a href="Economy_of_the_British_Empire" title="Economy of the British Empire">British Empire</a></li>

<li><a href="Interwar_unemployment_and_poverty_in_the_United_Kingdom" title="Interwar unemployment and poverty in the United Kingdom">Interwar unemployment and poverty</a></li>

<li><a href="List_of_recessions_in_the_United_Kingdom" title="List of recessions in the United Kingdom">list of recessions</a></li>

<li><a href="Economy_of_England_in_the_Middle_Ages" title="Economy of England in the Middle Ages">Middle Ages England</a>/<a href="Economics_of_English_agriculture_in_the_Middle_Ages" title="Economics of English agriculture in the Middle Ages">agriculture</a></li>

<li><a href="Economic_history_of_Ireland" title="Economic history of Ireland">pre-Republic Ireland</a></li>

<li><a href="Economic_history_of_Scotland" title="Economic history of Scotland">Scotland</a>/<a href="History_of_agriculture_in_Scotland" title="History of agriculture in Scotland">agriculture</a>/<a href="Economy_of_Scotland_in_the_Middle_Ages" title="Economy of Scotland in the Middle Ages">Middle Ages</a>/<a href="Industrial_Revolution_in_Scotland" title="Industrial Revolution in Scotland">Industrial Revolution</a></li>

<li><a href="History_of_trade_unions_in_the_United_Kingdom" title="History of trade unions in the United Kingdom">trade unions</a></li>

<li><a href="Economy%2C_industry%2C_and_trade_of_the_Victorian_era" title="Economy, industry, and trade of the Victorian era">Victorian era</a></li>

<li><a href="Economic_history_of_Wales" title="Economic history of Wales">Wales</a>/<a href="Industrial_Revolution_in_Wales" title="Industrial Revolution in Wales">Industrial Revolution</a></li></ul></li>

<li><a href="Economic_history_of_the_United_States" title="Economic history of the United States">United States</a>

<ul><li><a href="History_of_agriculture_in_the_United_States" title="History of agriculture in the United States">agriculture</a></li>

<li><a href="History_of_banking_in_the_United_States" title="History of banking in the United States">banking</a></li>

<li><a href="American_business_history" title="American business history">business</a></li>

<li><a href="History_of_central_banking_in_the_United_States" title="History of central banking in the United States">central banking</a></li>

<li><a href="Industrial_Revolution_in_the_United_States" title="Industrial Revolution in the United States">Industrial Revolution</a></li>

<li><a href="History_of_investment_banking_in_the_United_States" title="History of investment banking in the United States">investment banking</a></li>

<li><a href="Labor_history_of_the_United_States" title="Labor history of the United States">labor</a></li>

<li><a href="List_of_economic_expansions_in_the_United_States" title="List of economic expansions in the United States">list of economic expansions</a></li>

<li><a href="List_of_recessions_in_the_United_States" title="List of recessions in the United States">list of recessions</a></li>

<li><a href="History_of_the_lumber_industry_in_the_United_States" title="History of the lumber industry in the United States">lumber industry</a></li>

<li><a href="History_of_monetary_policy_in_the_United_States" title="History of monetary policy in the United States">monetary policy</a></li>

<li><a href="History_of_the_petroleum_industry_in_the_United_States" title="History of the petroleum industry in the United States">petroleum industry</a></li>

<li><a href="History_of_tariffs_in_the_United_States" title="History of tariffs in the United States">tariffs</a></li>

<li><a href="Technological_and_industrial_history_of_the_United_States" title="Technological and industrial history of the United States">technological and industrial</a></li>

<li><a href="History_of_the_United_States_dollar" title="History of the United States dollar">United States dollar</a></li></ul></li>

<li><a href="Economic_history_of_Zimbabwe" title="Economic history of Zimbabwe">Zimbabwe</a></li></ul>

</div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Related topics</th><td class="navbox-list-with-group navbox-list navbox-even" style="width:100%;padding:0"><div style="padding:0 0.25em">

<ul><li><a href="Aggregate_demand" title="Aggregate demand">Aggregate demand</a>/<a href="Aggregate_supply" title="Aggregate supply">Supply</a>

<ul><li><a href="Effective_demand" title="Effective demand">Effective demand</a></li>

<li><a href="General_glut" title="General glut">General glut</a></li>

<li><a href="AD%E2%80%93AS_model" title="AD–AS model">Model</a></li>

<li><a href="Overproduction" title="Overproduction">Overproduction</a></li>

<li><a href="Paradox_of_thrift" title="Paradox of thrift">Paradox of thrift</a></li>

<li><a href="Nominal_rigidity" title="Nominal rigidity">Price-and-wage stickiness</a></li>

<li><a href="Underconsumption" title="Underconsumption">Underconsumption</a></li></ul></li>

<li><a href="Business_cycle" title="Business cycle">Business cycle</a></li>

<li><a href="Credit_cycle" title="Credit cycle">Credit cycle</a></li>

<li>/<a href="Inflation" title="Inflation">Inflation</a>

<ul><li><a href="Chronic_inflation" title="Chronic inflation">Chronic</a></li>

<li><a href="Classical_dichotomy" title="Classical dichotomy">Classical dichotomy</a></li>

<li><a href="Disinflation" title="Disinflation">Disinflation</a></li>

<li><a href="Money_supply" title="Money supply">Money supply</a>/<a href="Demand_for_money" title="Demand for money">demand</a></li>

<li><a href="Neutrality_of_money" title="Neutrality of money">Neutrality of money</a></li>

<li><a href="Price_level" title="Price level">Price level</a></li>

<li><a href="Real_versus_nominal_value_(economics)" class="mw-redirect" title="Real versus nominal value (economics)">Real and nominal values</a></li>

<li><a href="Velocity_of_money" title="Velocity of money">Velocity of money</a></li></ul></li>

<li><a href="Economic_expansion" title="Economic expansion">Expansion</a>

<ul><li><a href="Economic_miracle" title="Economic miracle">Miracle</a></li>

<li><a href="Economic_recovery" title="Economic recovery">Recovery</a></li>

<li><a href="Economic_stagnation" title="Economic stagnation">Stagnation</a></li></ul></li>

<li><a href="Interest_rate" title="Interest rate">Interest rate</a>

<ul><li><a href="Nominal_interest_rate" title="Nominal interest rate">Nominal interest rate</a></li>

<li><a href="Real_interest_rate" title="Real interest rate">Real interest rate</a></li>

<li><a href="Yield_curve" title="Yield curve">Yield curve</a>/<a href="Inverted_yield_curve" title="Inverted yield curve">Inverted</a></li></ul></li>

<li><a href="Recession" title="Recession">Recession</a>

<ul><li><a href="Balance_sheet_recession" title="Balance sheet recession">Balance sheet</a></li>

<li><a href="Economic_depression" title="Economic depression">Depression</a></li>

<li><a href="Global_recession" title="Global recession">Global</a></li>

<li><a href="Rolling_recession" title="Rolling recession">Rolling</a></li>

<li><a href="Recession_shapes" title="Recession shapes">Shapes</a></li>

<li><a href="Stagflation" title="Stagflation">Stagflation</a></li></ul></li>

<li><a href="Shock_(economics)" title="Shock (economics)">Shock</a>

<ul><li><a href="Demand_shock" title="Demand shock">Demand</a></li>

<li><a href="Supply_shock" title="Supply shock">Supply</a></li></ul></li>

<li><a href="Unemployment" title="Unemployment">Unemployment</a>

</div></td></tr></tbody></table></div>

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