Deflation increased the wealth of British financial asset holders

Evidence

Keynes’s Note of Interview with Chancellor” (February 15, 1920, T 172/1384, in Howson 1973, 459). 73 Falling prices increased the value of fi nancial assets that were fi xed in nominal terms, notably the warswollen national debt, and thus increased the wealth of holders of these assets— mainly the betteroff members of the community and fi nancial institutions. — Clara E. Mattei, The Capital Order, 1697

Categorization

• XREF: connects to: British austerity served foreign holders of sterling assets more than domestic workers — Mark Blyth, Austerity: The History of a Dangerous…, 513; Monetary deflation was the decisive instrument that defeated British labor. — Clara E. Mattei, The Capital Order: How Economists…, 980; Britain’s gold-standard return demanded prolonged deliberate deflation — Clara E. Mattei, The Capital Order: How Economists…, 995 (+3 more)

Broader Connections

• Quantitative easing stabilized banks while inflating asset values for the affluent #expands (0.85) — Andrew deWaard, Derivative Media, 84
• Currency devaluation causes import inflation and cuts real wages #qualifies (0.75) — Mark Blyth, Austerity, 210