Hindsight · review build · data not yet validated
Price deflation concerned economists in the early ’00 years, but they quickly realized it was a good thing. The high tech community pointed out that significant deflation had existed in the computer hardware and software industries for many years earlier without detriment.
Grader A: miss
Deflation did concern economists in the early 2000s, but they did not conclude it was a good thing. The Federal Reserve treated deflation as a danger to prevent and cut rates to 1% to avoid it. The consensus view stayed negative.
Test: Consensus test: the dominant policy view (Federal Reserve) called sustained deflation destructive in 2002, the opposite of the claim.
Grader B: miss
Economists did worry about deflation in the early 2000s: Fed Governor Bernanke gave a speech on it in November 2002. But the worry did not end in a view that deflation was good. Bernanke called sustained deflation 'highly destructive' and said the Fed should resist it. US CPI inflation stayed positive in every year from 1999 to 2008 (1.6% to 3.8%). The only negative year was 2009 (-0.36%), and it was treated as a crisis symptom. The first clause is true. The core claim (deflation accepted as good) is false.
Test: Not an adoption claim. Test: did price deflation occur, and did the economic consensus accept it as benign? US CPI: positive every year 2000-2008; -0.36% in 2009. Fed consensus: deflation is a danger.