Tuesday, October 16, 2012

Bibliography on Debt Deflation

I provide a bibliography below on debt deflation, which includes some of the neoclassical literature, as well as the Post Keynesian work.

See Steve Keen’s criticisms of an earlier version of Eggertsson and Krugman (2012) for the problems in the neoclassical approach to debt deflation.
Arestis, P. and E. Karakitsos. 2003. “How Far Can U.S. Equity Prices Fall Under Asset and Debt Deflation,” Levy Economics Institute, Economics Working Paper Archive

Capie, Forrest and Geoffrey E. Wood (eds.), Asset Prices and the Real Economy. Macmillan, Basingstoke.

Challe, Edouard. 2000. “La ‘debt-deflation’ selon Irving Fisher, Histoire et actualite d’une theorie de la crise financiere” [Irving Fisher’s Debt-Deflation Theory of Great Depressions: History and Current Relevance of a Theory of Financial Crises], Cahiers d’Economie Politique 36: 7–38.

Chiarella, Carl, Flaschel, Peter and Willi Semmler. 2001. “The Macrodynamics of Debt Deflation,” in Riccardo Bellofiore and Piero Ferri (eds.), Financial Fragility and Investment in the Capitalist Economy: The Economic Legacy of Hyman Minsky, Volume II. Edward Elgar, Cheltenham. 133–184.

De Antoni, Elisabetta. 2010. “Minsky, Keynes, and Financial Instability: The Recent Subprime Crisis,” International Journal of Political Economy 39.2: 10–25.

Di Martino, Paolo. 1999. “A Re-discovered Approach: Irving Fisher’s Debt-Deflation Theory,” History of Economic Ideas 7.3: 193–207.

Dimand, Robert W. 1994. “Irving Fisher’s Debt-Deflation Theory of Great Depressions,” Review of Social Economy 52.1: 92–107.

Eggertsson, G. B. and P. Krugman. 2012. “Debt, Deleveraging, and the Liquidity Trap: A Fisher-Minsky-Koo Approach,” Quarterly Journal of Economics 127.3: 1469–1513.

Eichengreen, Barry and Richard S. Grossman. 1997. “Debt-Deflation and Financial Instability: Two Historical Explorations,” in Forrest Capie and Geoffrey E. Wood (eds.), Asset Prices and the Real Economy. Macmillan, Basingstoke. 65–96.

Fackler, James S. and Randall E. Parker. 2005, “Was Debt Deflation Operative during the Great Depression?,” Economic Inquiry 43.1: 67–78.

Fisher, I. 1933. The Debt-Deflation Theory of Great Depressions,” Econometrica 1: 337-357.

Goodhart, C. and B. Hofmann. 2004. “Deflation, Credit and Asset Prices,” in R. Burdekin and P. Siklos (eds.), Deflation: Current and Historical Perspectives. Cambridge University Press, Cambridge. 166–188.

Guttmann, Robert. 2009. “Asset Bubbles, Debt Deflation, and Global Imbalances,” International Journal of Political Economy 38.2: 46–69.

Hudson, Michael. 2012. “The Road to Debt Deflation, Debt Peonage, and Neofeudalism,” Levy Economics Institute, Economics Working Paper Archive.

Hughes Hallett, Andrew and Y. Ma. 1996–1997. “The Dynamics of Debt Deflation in a Monetary Union,” Journal of International and Comparative Economics 5.1: 1–29.

Kaku, Kagehide. 1997. “Debt-Deflation in Japan,” in Forrest Capie and Geoffrey E. Wood (eds.), Asset Prices and the Real Economy. Macmillan, Basingstoke. 242–270.

Keen, Steve. 2000. “The Nonlinear Economics of Debt Deflation,” in Commerce, Complexity, and Evolution: Topics in Economics, Finance, Marketing, and Management. Cambridge University Press, New York. 83–110.

King, Mervyn. 1994. “Debt Deflation: Theory and Evidence,” European Economic Review 38: 419–445.

King, Mervyn. 2005. “Debt Deflation: Theory and Evidence,” in Pierre L. Siklos (ed.), The Economics of Deflation (vol. 1). Edward Elgar, Cheltenham. 220–246.

Lando, Henrik. 1992. “The Economic Consequences of Debt-Deflation,” in Bruno Amoroso and Jesper Jespersen (eds.), Macroeconomic Theories and Policies for the 1990s: A Scandinavian Perspective. St. Martin’s Press, New York. 53–71.

Lucarelli, Bill. 2008. “The United States Empire of Debt: The Roots of the Current Financial Crisis,” Journal of Australian Political Economy 62: 16–38.

Meltzer, Allan H. 1997. “Debt-Deflation: Theory and Evidence: Comment,” in Forrest Capie and Geoffrey E. Wood (eds.), Asset Prices and the Real Economy. Macmillan, Basingstoke. 228–235.

Minsky, H. P. 1982. Can “It” Happen Again?: Essays on Instability and Finance. M.E. Sharpe, Armonk, N.Y.

Minsky, Hyman P. 1980. “Capitalist Financial Processes and the Instability of Capitalism,” Journal of Economic Issues 14.2: 505–523.

Minsky, H. P. 1992. The Financial Instability Hypothesis. Working papers (Jerome Levy Economics Institute no. 74).

Minsky, H. P. 2008 [1975]. John Maynard Keynes. McGraw-Hill, New York and London.

Nidhiprabha, Bhanupong. 1998. “Economic Crises and the Debt-Deflation Episode in Thailand,” ASEAN Economic Bulletin 15.3: 309–318.

Pollin, Robert. 1997. “The Relevance of Hyman Minsky,” Challenge 40.2: 75–94.

Raines, J. Patrick and Charles G. Leathers. 2008. Debt, Innovations, and Deflation: The Theories of Veblen, Fisher, Schumpeter and Minsky. Edward Elgar, Cheltenham.

Shiller, R. J. 2011. “Irving Fisher, Debt Deflation and Crises,” Cowles Foundation Discussion Papers 1817.

Wolfson, Martin H. 1996. “Irving Fisher’s Debt-Deflation Theory: Its Relevance to Current Conditions,” Cambridge Journal of Economics 20.3: 315–333.

Wray, L. Randall. 2009. “The Rise and Fall of Money Manager Capitalism: A Minskian Approach,” Cambridge Journal of Economics 33.4: 807–828.

Wray, L. Randall. 2011. “Financial Keynesianism and Market Instability,” Levy Economics Institute, Economics Working Paper Archive.


  1. Very useful, thanks. Also, I would suggest Keynes GT ch. 19, and Kalecki's 1944 EJ reply to Pigou as relevant for the history of thought component (not just Fisher).

  2. Tom Palley's PK manual too, I sould add.

  3. Thanks for the bibliography. I am reading Raines and Leathers (2008) at the moment. As the title suggest, they attempt to cover a wide range of theories spanning Classical, Neo-Classical, Post-Keynesian, "Walrasian" Austrian, and Old Institutional thinkers. With every press release from a major central bank I suspect that this thinking is lost; if their DSGE model isn't telling them about deflationary tendencies then it isn't there.