Boom Bust Season 3 Episode 72 Inflating the Threat of Deflation?

Inflating the Threat of Deflation? is the 72nd episode of the third season of the show Boom Bust. In this episode, the show's hosts delve into the issue of deflation, exploring whether the threat of deflation is overblown or not. Deflation, which refers to a decrease in the general price level of goods and services in an economy, is generally viewed as a negative phenomenon, as it often leads to a decrease in economic activity and can even cause a recession.

The episode starts with a discussion about the current state of the global economy and the role that inflation and deflation play in it. The hosts point out that many central banks around the world are currently pursuing expansionary monetary policies in an effort to combat low inflation rates. However, they also note that there has been much debate about whether these policies are working or creating new problems.

The hosts then turn their attention to the United States and its recent history with deflation. They look at the deflationary pressures that the US experienced during the Great Recession and the response of the Federal Reserve to those pressures. They also examine the current state of inflation and deflation in the US, including the factors that are contributing to each.

Next, the hosts discuss the impact that deflation can have on different segments of the economy, including consumers, businesses, and investors. They examine the reasons why deflation can be harmful, such as how it can lead to a decrease in demand for goods and services and how it can make it more difficult for borrowers to pay off loans. However, they also note that there are some potential benefits to deflation, such as how it can lead to lower interest rates and make it easier for businesses to invest in new projects.

Throughout the episode, the hosts interview experts in the field of economics to gain insights into the issue of deflation. They speak with economists from both the academic and policy worlds to get a variety of perspectives on the topic. They also cite recent research on deflation to help shed some light on how it affects different economies.

Finally, the hosts discuss the different policy options that are available to combat deflation. They explore the pros and cons of each option, including expansionary monetary policy, fiscal stimulus, and structural reforms. They also examine how different countries have used these policies in the past and what the outcomes of those policies were.

In conclusion, Inflating the Threat of Deflation? is a thought-provoking episode that explores a complex economic phenomenon. The hosts provide a thorough analysis of the issue, delving into the various factors that contribute to deflation and its impact on different segments of the economy. Their interviews with experts in the field help to provide a well-rounded perspective on the issue, and their discussion of potential policy solutions highlights the importance of finding the right approach to combat deflation.