Booth: How Technological Deflation is Driving Central Banks
For decades, economists believed that low but consistent inflation was beneficial to economic growth. In the United States, a broad middle class enjoyed the benefits of rising home prices, regular wage increases, and the ability to borrow money and then pay it back in cheaper dollars. Jeff Booth, author of “The Price of Tomorrow,” argues that a rising tide of deflation — driven by the rapid growth of technology — now makes the old theory of low but stable inflation a dangerously outdated economic framework. More ominously, central banks around the world remain wedded to an outmoded economic model and continue “picking the pocket of some people — and giving it to others.” Jeff Booth joins Real Vision’s Max Wiethe for this thought-provoking conversation.
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