1991/07/01 by Jack Vernon · 2 citations
Economics, Econometrics and Finance · #Monetary Policy and Economic Impact #Market Dynamics and Volatility #Global Financial Crisis and Policies
paper · doi:10.1111/j.1465-7295.1991.tb00847.x
openalex publication_date 1991/07/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/27
World War I was followed by an extremely sharp deflation in 1920–1921. Most treatments have attributed this deflation to a decline in aggregate demand. This paper, noting that the deflation was not only large, but large relative to the accompanying decline in real product, argues that it was caused by a decline in aggregate demand combined with an increase in aggregate supply.