Can Deflation Create U.S. Jobs?

摘要

Over the past year it has become evident that deflation is a driving force of the U.S. economy. Margins are being squeezed in virtually all businesses.rnRecently, Paul Krugman had an opinion piece in the New York Times on falling wages and how they lead to less spending which presents an ongoing danger for the economy.rnKrugman explains that according to John Maynard Keynes an expectation of a 2% wage reduction will be the rough equivalent of a 2% tax increase on an economy. A world-famous economist, Keynes advocated government interventions in recessions and depressions to reduce their ill-effects on economies.