The U.S. experienced periods of deflation in the late 19th century from "summary" of A Monetary History of the United States, 1867-1960 by Milton Friedman,Anna Jacobson Schwartz
The phenomenon of deflation in the late 19th century was a significant feature of the U. S. economy during that period. It was marked by a persistent decrease in the general price level of goods and services, leading to a contraction in economic activity. This deflationary trend was driven by various factors, including changes in the money supply, shifts in aggregate demand and supply, and fluctuations in productivity levels. One of the key contributors to the deflationary pressures in the late 19th century was the tight monetary policy adopted by the U. S. government and the banking system. This policy stance resulted in a decrease in the money supply, limiting the availability of credit and dampening overall economic activity. As a result, businesses faced difficulties in obtaining financing for investment and expansion, leading to a decline in output and employment levels. Additionally, shifts in aggregate demand and supply dynamics pla...
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