A so-called 'Kindleberger Spiral' could materialize if capital flows dry up The Federal Reserve, by not cutting interest rates, is risking the creation of a deflationary downturn called a Kindelberger Spiral, a leading bond manager says. The concept comes from a famed economist, Charles Kindleberger, who wrote a seminal book on the Great Depression in 1973 that received an update from leading economists Brad DeLong and Barry Eichengreen in 2013. The idea is that when beggar-thy-neighbor tariff policies are widespread, the central bank of the world's reserve currency has to provide liquidity to offset the loss caused ... (full story)