SLP153 Philipp Bagus - What Most People Get Wrong About Deflation
Stephan Livera Podcast
00:00
Bank Credit Contraction in a Recession
In a bust, some investment projecter must be liquidated. This means that there will be losses for the banks that financed these projects. So we are to half an artificial boom. More projects are started than there are real savings around. And then when they, when these loans ae paid back, and the banks don't give immediately a new loan, then the money supplyes shrinks. Then we can actually have a kind of deflation ar respiral.
Play episode from 39:04
Transcript
