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What was the effect of deflation on debtors?
Deflation harms borrowers (b/c they have to pay back more value), so firms and households didn't want to take on existing debt when their current debt was becoming more burdensome, so there was no investment spending.
Karteninfo:
Autor: savhighsmith
Oberthema: Economics
Thema: History of Economics
Schule / Uni: UGA
Ort: Athens
Veröffentlicht: 11.12.2010