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After unequivocally claiming priority for the Debt Deflation Theory in the opening paragraph of the paper, the last footnote reads (my bold):
A selected bibliography of the writings of others is given in Appendix III of Booms and Depressions, ... This bibliography omitted Veblen's Theory of Business Enterprise, ...Chater VII of which, Professor Wesley C. Mitchell points out, probably comes nearest to the debt-deflation theory. Hawtreys' writings seem the next nearest. Professor Alvin H. Hansen informs me that Professor Paxson, of the American History Department of the University of Wisconsin, in a course on the History of the West some twenty years ago, stressed the debt factor and its relation to deflation. But, so far as I know, no one hitherto has pointed out how debt liquidation defeats itself via deflation nor several other features of the present "creed". If any clear-cut anticipation exists, it can never have been prominently set forth, for even the word "debt" is missing in the indexes of the treatises on the subject.
See my diary The Credit Bubble theory of the Business Cycle (I: Veblen) (February 13th, 2010)

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
by Migeru (migeru at eurotrib dot com) on Fri Mar 5th, 2010 at 04:30:58 PM EST
[ Parent ]
I was thinking of you and techno when I read the part about Veblin. Had you previously come across Fisher's paper?

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Fri Mar 5th, 2010 at 05:51:04 PM EST
[ Parent ]
No, this is a first reading. Now I want to read Booms and Depressions.

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
by Migeru (migeru at eurotrib dot com) on Fri Mar 5th, 2010 at 06:59:07 PM EST
[ Parent ]
A book which, shockingly, is out of print! It's available as a PDF from the St. Louis Fed [link to HTML summary page]

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
by Migeru (migeru at eurotrib dot com) on Sat Mar 6th, 2010 at 03:57:41 AM EST
[ Parent ]
Thanks. I am coming to love free books. Did you see Lombard Street, a description of the money market by Walter Bagehot, 1873? Same site. A real treasure trove.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Sat Mar 6th, 2010 at 11:47:10 AM EST
[ Parent ]

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