Zimbabwe hyper-inflation (80 billion% monthly peak....it took 24.7 hours for prices to double!)... which I believe Hungary 1946 had the most with 13 quadrillion % inflation...15.6 hours for prices to double!
Despite that, it seems that deflation related unemployment, etc is catastropic and has less true quick fixes.......especially with how artificially low interest rates are now....true debt is being realized.
Like you mentioned before there are many factors for all of these things. A few things in America off of the top of my head recently would be banks underpricing risk based on federal guarantees...not to mention tons of artificial liquidity thanks to the FRB all directed toward the housing market...most all of the problems would have to do with the burden of government in economics (prevailing in uncertainty).
Perhaps we should rethink the Humphrey-Hawkins Full Employment Act...it seems as though government intervention seems to oscillate problems by credit (either promises or any like).
While some deflation is normal, the upcoming entitlement debacle could be the nail in the coffin... we'll see what happens.
Last edited by ryan1234; 12-06-2008 at 06:53 PM.