My recent post “What Bernanke doesn’t understand about deflation” has hit a chord, with a number of sites around the world reproducing it—including John Mauldin’s Outside the Box column. But it has raised a couple of queries in people’s minds too:
- Does my definition that “aggregate demand equals GDP plus the change in debt” involve double-counting?
- My figures for the USA are difficult to reconcile with the published US Flow of Funds data.