Working Paper

Deflation und Konsumstau: Mikroökonomische Evidenz

Kiel Working Papers, 1935

Deflation is said to dampen aggregate demand because consumers would defer purchases while waiting for prices to fall further in the future. We explore the validity of this reasoning at the level of individual goods. Our findings suggest that the widespread concerns about impaired aggregate consumption by deflation might lack a sound microeconomic foundation.


Henning Klodt
Anna Hartmann


Publication Date
JEL Classification
E31, D12