There are countless notable figures pointing at “deflation” as the cause for Japan’s problems, as they have been “fighting” this evil to no avail.
Obviously the simpleton theory is that “expected lower prices” leads to consumers postponing purchases to such a degree that it is the cause for economic collapse.
What I think I am correct in highlighting: The US had many times the amount of % deflation, yet it lasted less than 2 years.
I do believe that I am showing that it is the policy response that is the cause and not the result of bad policy (necessary deflation).
In my figures, Japan lived through dramatic inflation in the 60’s and 70’s. What is the cause of this?
Are there other things that I can study to refute the deflation spiral nonsense? Other periods? Under the gold standard? I already understand the common sense reasons why “any amount of deflation” isn’t bad. I.E. http://mises.org/daily/6362/