Garett Jones on Fisher, Debt, and Deflation

Garett Jones talks with host Russ Roberts about the ideas of Irving Fisher on debt and deflation. Fisher argued that debt-fueled investment booms lead to liquidation of assets at unexpectedly low prices followed by a contraction in the money supply which leads to deflation and a contraction in the real side of the economy--a recession or a depression. Jones then discusses the relevance of Fisher's theory for the current state of the economy in the aftermath of the financial crisis.