The Rising Influence of Rising Affluence

[flatlander_60048]

Anybody catch Bernanke this AM? interesting comment about there being a prolonged bout of deflation during the 1870's thru 1900. This was attributed to improvements in transportation during the industrial revolution. The inference is that major technology breakthroughs create dislocations that take considerable time to work out. The internet and the many businesses it has displaced may very well result in decades of deflation in a manner similar to the end of the 19th century.

FL