In the present crisis the US has done reasonably well compared to the Great Depression because it avoided a huge deflation; big deflations are just as disruptive as big inflations, so the goal should be monetary stability avoiding both extremes (per Friedman, Cassel and others).

normativepending

Speaker

Douglas Irwin

Evidence Quote

big deflations are just as disruptive, just as nasty as as big inflations. Obviously you want to avoid the the wide swings and avoid the extremes

Source

Douglas Irwin on the Great Depression and the Gold Standard 10/11/2010EconTalk
Created: 6/15/2026, 9:36:56 AM

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