The one (deflationary depression) doesn‘t excludebthe other (inflationary crack up), in fact they are both different sides of the same coin. Mises (and Rothbard) both point to the difficulty in knowing whether the deflationary depression will be preceded by an (hyper) inflationary spike in asset prices and wages or not. In the end it doesn‘t matter: the resulting liquidation of unsustainable debt levels and the wholesale destruction of demand will result in a depression. The only real question is whether it will be allowed to sort itself out quickly (1921) or be so chronically interfered with by the same people who caused it in the first place that it takes a decade or two to play out.
Why Alex Gurevich thinks we're headed for a deflationary depression
The one (deflationary depression) doesn‘t excludebthe other (inflationary crack up), in fact they are both different sides of the same coin. Mises (and Rothbard) both point to the difficulty in knowing whether the deflationary depression will be preceded by an (hyper) inflationary spike in asset prices and wages or not. In the end it doesn‘t matter: the resulting liquidation of unsustainable debt levels and the wholesale destruction of demand will result in a depression. The only real question is whether it will be allowed to sort itself out quickly (1921) or be so chronically interfered with by the same people who caused it in the first place that it takes a decade or two to play out.