Deflation and Depression: Is There and Empirical Link?

    Are deflation and depression empirically linked? No,

    concludes a broad historical study of inflation and real
 
    output growth rates. Deflation and depression do seem to 

    have been linked during the 1930s. But in the rest of 

    the data for 17 countries and more than 100 years, there 

    is virtually no evidence of such a link.