Another Piece on the Trouble of Deflation Caused by Falling Commodity Prices

April 01, 2015

A generous donor has agreed to give BTP big bucks for every case of a silly article complaining about deflation caused by a drop in energy prices. (I wish.) Anyhow, the NYT gave us another one today, thankfully with at least some qualifying language.

As I’ve pointed out many times before (most recently here), it doesn’t matter if prices are falling if the decline is primarily due to an imported product like oil. The reasons that low inflation or deflation are troubling do not apply. Let’s see how long the NYT takes to get it straight and maybe the rest of the media will follow.

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