Why the Econ-Pundits Got It Wrong

RALEIGH — Well-publicized forecasts of the catastrophic American deflation of 2002, trumpeted by such headlines as “The Deflation Monster Lives” and “Why We Should Fear Deflation,” never materialized, a Pace University economist said at a John Locke Foundation luncheon Friday. Austrian-school economist Joseph T. Salerno refuted the many myths about deflation, including its definition, differing causes, and effects upon the American economy.