Eggertsson, Gauti B. (contributor) - 2005
in the data. When FDR was inaugurated in
March 1933 excessive deflation turned into modest inflation. There was little … resulted in 26 percent deflation, while FDR’s first registered 13
percent inflation. Similarly, output declined by 30 percent … model with sticky prices
and rational expectations.
Key words: deflation, Great Depression, regime change, zero interest …