Most worryingly for Monetarists, deflation is usually accompanied by collapses in the banking sector balance sheets, and because they, too, share an aversion for understanding cause and effect, it thus follows that central banks must do everything possible to ensure that deflation never happens. For the canonical treatment of why Monetarists are so scared of deflation, see a 2002 speech by former Chairman of the Federal Reserve Ben Bernanke entitled Deflation: Making Sure “It” Doesn't Happen Here.5
