Deflation Process Jude Wanniski November 2, 2001

Memo To: SSU Students
From: Jude Wanniski
Re: Deflation Process

I posted today's lesson as a memo on the margin two days ago. Many of you may have seen it then, but I really think it is important enough to run this weekend as a formal lesson. It was commissioned by George Gilder, the chronicler of the New Economy, who published it in the September/October issue of The American Spectator. It is longer than anything else I have posted as an SSU lesson, running 6,000 words, as George told me to write it as long as it needed to be to tell the deflation story. His editors did a wonderful job, I think, in getting all those words strung out smoothly. I'm happy to share with them the great many compliments I've gotten in the last few days. Those of you who are SSU students will recognize a lot of the material here, but you will also see quite a bit that has never been published before – and perhaps understand what is going on in the world economy today better than President George W. Bush's closest economic advisors. In that regard, it is a scary story, which is why we called it "The Deflation Monster." There are already many questions coming in from those who saw it as a "Memo on the Margin." I recommend you print it out and when you have time to read it all at once, mark it up for questions you can put to me for a future Q&A lesson.

The Deflation Monster