Saturday, March 7, 2015

Irving Fisher's Debt Deflation Theory of Great Depressions

The version I have is a version put out by "ThaiSunset Publications".

It includes the paper, which is a very important paper in terms of the history of economic thought, and it includes some poorly reproduced graphs that Fisher talks about in the paper. It is also fleshed out with a biographical note that might have come from anywhere - pedia. I didn't catch out any glaring inconsistencies in the history.

My guess is that you can get this somewhere else for less. Even with all the padding, my copy is just over a hundred pages.

One more thing. Yes, Fischer might be most famous in our time for being the prominent economist who claimed before the 1929 crash that stock prices had reached a permanently high plateau. He was wrong on that call. But prior to that and after that he did a lot of important theoretical work that should be his legacy. At they very least he invented some data storage techniques that made him a rich man.

So, the paper shows the mechanism how debt leads to great depressions. Prefigures Keynes "General Theory," and should be in your bag of tricks. Maybe just not the edition I have.