Deflace, odklad spotřeby a hospodářské krize: rétorika centrálních bank vs. ekonomická literatura

Deflation and Economic Crisis: Central Banks' Rhetoric vs. Economic Literature

Lukáš Kovanda and Martin Komrska

Politická ekonomie, 2017, vol. 2017, issue 3, 351-369

Abstract: The aim of this paper is to show that the current anti-deflationary rhetoric of central banks lacks adequate support from the economic literature. Based on pure theory, there might be both positive and negative effects of deflation on economic development. The historical record is, if anything, also ambiguous. As recent literature reveals, a substantial number of deflationary periods were accompanied by robust economic growth. The two frequently mentioned examples of dismal deflationary periods - the Great Depression in the United States and the lost decades in Japan - seem to be exceptions. Taking into account the arguments presented in this paper, we argue that central banks should revise their communication strategy. If there is a need to defend easy monetary policy, the main argument should be based, dominantly, on the divergence of forecasted inflation from the inflation target, with a much lesser emphasis on the need to avoid the allegedly destructive effect of deflation.

Keywords: deflation; monetary policy; recession; inflation expectations; inflation targeting; central bank's communication (search for similar items in EconPapers)
JEL-codes: E21 E31 E42 E43 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://polek.vse.cz/doi/10.18267/j.polek.1148.html (text/html)
http://polek.vse.cz/doi/10.18267/j.polek.1148.pdf (application/pdf)
free of charge

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:prg:jnlpol:v:2017:y:2017:i:3:id:1148:p:351-369

Ordering information: This journal article can be ordered from
Redakce Politické ekonomie, Vysoká škola ekonomická, nám. W. Churchilla 4, 130 67 Praha 3
http://polek.vse.cz

DOI: 10.18267/j.polek.1148

Access Statistics for this article

Politická ekonomie is currently edited by Jiřina Bulisová

More articles in Politická ekonomie from Prague University of Economics and Business Contact information at EDIRC.
Bibliographic data for series maintained by Stanislav Vojir ().