Customer Quote by James Rickards
““It is one thing when prices drift downward over time due to innovation, scalability or other efficiencies. This might be considered “good” deflation and is familiar to any contemporary consumer who has seen prices of computers or wide-screen TVs fall year after year. It is another matter when prices are forced down by unnecessary monetary contraction, credit constraints, deleveraging, business failures, bankruptcies and mass unemployment. This may be considered “bad” deflation. This bad deflation was exactly what was required in order to return the most important currencies to their prewar parity with gold.””
About This Quote
Source Speech: Interview, James Rickards, 2015
Deflation can be “good” from tech advances or “bad” from forced monetary contraction causing economic distress.
In simple terms: Good deflation from innovation; bad deflation from forced cuts.
Key Takeaway
Beware policy‑driven price falls.
Themes
economics
inflation
monetary policy
history
gold standard
Mood
cautious
analytical
critical
Type
economic
historical
advisory
When to use this quote
- financial crisis
- policy design
- investment strategy
- risk management
Key Concepts
deflation
monetary contraction
prewar parity
gold
currency stability
Questions to Reflect On
- How can policymakers differentiate good vs bad deflation?
- What safeguards prevent harmful deflation?
A Different Perspective
Bad deflation often worsens unemployment and debt crises.
![“This ... he largest financial bailout in history ... was not just a bailout of SVB [Silicon Valley Bank]. It was a bailout of over fifty thousand SVB depositors with over $170 billion in deposits. It was a bailout of SVB's customers, it's employees, their suppliers, and the entire high-tech…” quote by James Rickards](https://sms4smile.com/quotes/img-quotes/385/james-rickards-25234_around-the-world_this-he-largest-financial-bailout-in-his_360776.jpg)
