now where is george celdran university of georgia economics professor and author of the theory of free banking. time now for a quick break but stick around because when we were turn we're bringing you part two of my interview with ben steele senior fellow or fellow and director of international economics at the council on foreign relations then in today's big deal i'm joined by our tease me camp to discuss chevrons ricks recent pope paul you won't want to miss it so stay tuned but as we head to a quick break here are some of the closing numbers that the bell sticker out. twenty fourteen promises the ultimate in the exhilarating winter more than are. still in use in l.a. i make seven zero in on the rest of our lives take news team for sochi twenty four take. all ought. the journos have this specific tendency of seeking out negative stories about russia and what could be more negative than the possibility of a major terror attack when it comes to western media there is a tendency to look at the caucasus emirates for through the prism of what the russians do that is don't look at the idio

now where is george celdran university of georgia economics professor and author of the theory of free banking. time now for a quick break but stick around because when we were turn we're bringing you part two of my interview with ben steele senior fellow or fellow and director of international economics at the council on foreign relations then in today's big deal i'm joined by our tease me camp to discuss chevrons rick's recent hope all your won't want to miss it so stay tuned but as we head to a quick break here are some of the closing numbers that the bell sticker out. of. star wars. for the finish line of the marathon. the big. the for the. state. very hard to take. that back with that you're right there are no. such. a welcome back now when we talk about our global financial system there is one meeting that underlies much of how it functions the famous bretton woods conference which set up many of the institutions that rule the institutions and rules rather that determine how soft our nation's interact with one another economically now the phrase bretton woods has become shorthand

now i recently interviewed george celdran professor of economics at the university of georgia and a senior fellow at the cato institute and i asked him what his thoughts were on the inflexibility of the gulf standard specifically in relation to its contribution to debt deflation of the one nine hundred thirty s. here's what he had to say. that is a very oversimplified perspective on what happened in the thirty's to put it mildly the true story is far more complicated the old gold standard which was in place in the decades prior to the outbreak of world war two the classical gold standard didn't create deflation problems although there were of course debtors who wish there had been more inflation than there actually was under that regime they always do it doesn't follow that the regime actually created a none healthy rate of deflation for the most part it didn't now with world war one basically the old classical gold standard broke down and after the war there were attempts to cobble it together that invoked some let's say short cuts being implemented or special arrangements being made to t

coming up the economist and senior fellow at the cato institute george celdran discusses inflation and deflation in all their forms and that in today's big deal ed harris and i are talking about the big drama surrounding one of bequests most respected exchanges but as we head to a quick break here's a look at some of today's closing numbers at the bell sticker out. of. a. very hard to take a. look. at that back with that hurt right there no. please. please. please. please. the. right. first right. and i would think. on our reporters. in two thousand and two ben bernanke he was worried about deflation at that time he gave his most famous speech to date on how to prevent a japanese style deflation from hitting the us now bernanke he's views helped convince the central bank to keep the fed funds rate at a record low one percent in two thousand and three and two thousand and four before the fed had to raise them due to an overheated housing market now fast forward to today and we have a new fed chair janet yellen but the deflation question is being asked again now our next guest george cel

new fed chair janet yellen but the deflation question is being asked again now our next guest george celdran a professor of economics at the university of georgia and a leading scholar in the field of monetary and banking theory he came on the show earlier and i asked him whether he thinks like many mainstream economists that deflation is really a bad thing almost worse than inflation here's what he had to say. well that is exactly what most mainstream economists believe my view is that deflation be a very in their cases what it was but it's a mistake to assume that deflation is always a bad thing because there. is in history at least when it's been a perfectly fine thing if we had more often the good current we don't board a lot of trouble so in your vision in your opinion is there good inflation and bad inflation basically a deflation that weakens consumer demand versus one that just gives consumers lower prices. absolutely yes and you've summed it up pretty pretty well i wish other economists could grasp the difference is it as readily as you do the bad kind of deflation which the most at