{"product_id":"9781614270102","title":"The Debt-Deflation Theory Of Great Depressions","description":"2011 Reprint of the 1933 edition. Following the stock market crash of 1929 and the ensuing Great Depression, Fisher developed a theory of economic crises called \"debt-deflation\", which rejected general equilibrium theory and attributed crises to the bursting of a credit bubble. According to the debt deflation theory, a sequence of effects of the debt bubble bursting occurs:\u003cp\u003e1. Debt liquidation and distress selling.\u003c\/p\u003e\u003cp\u003e2. Contraction of the money supply as bank loans are paid off.\u003c\/p\u003e\u003cp\u003e3. A fall in the level of asset prices.\u003c\/p\u003e\u003cp\u003e4. A still greater fall in the net worth of businesses, precipitating bankruptcies.\u003c\/p\u003e\u003cp\u003e5. A fall in profits.\u003c\/p\u003e\u003cp\u003e6. A reduction in output, in trade and in employment.\u003c\/p\u003e\u003cp\u003e7. Pessimism and loss of confidence.\u003c\/p\u003e\u003cp\u003e8. Hoarding of money.\u003c\/p\u003e\u003cp\u003e9. A fall in nominal interest rates and a rise in deflation adjusted interest rates.\u003c\/p\u003e\u003cp\u003eThis theory was ignored in favor of Keynesian economics, partly due to the damage to Fisher's reputation from his overly optimistic attitude prior to the crash, but has experienced a revival of mainstream interest since the 1980s, particularly since the Late-2000s recession, and is now a main theory with which he is popularly associated.\u003c\/p\u003e","brand":"Martino Fine Books","offers":[{"title":"Default Title","offer_id":47037537943792,"sku":"9781614270102","price":5.95,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0737\/7593\/9824\/files\/9781614270102_p0.jpg?v=1763848060","url":"https:\/\/shop-qa.barnesandnoble.com\/products\/9781614270102","provider":"Barnes \u0026 Noble (DEV)","version":"1.0","type":"link"}