Absolutely, but to know how much more skeptical to be, you have to know likely this outcome was, given your prior hypothesis. And for that purpose, knowing ways

Absolutely, but to know how much more skeptical to be, you have to know likely this outcome was, given your prior hypothesis. And for that purpose, knowing ways in which this situation differs from textbook, across-the-board deflation is very relevant. P.S., I found this discussion (http://www.wsj.com/articles/john-cochrane-whos-afraid-of-a-little-deflation-1415919082 http://www.wsj.com/articles/john-cochrane-whos-afraid-of-a-l...) to be pretty convincing. His guess is that sudden, dramatic, Depression-style deflation will have effects that are a lot different from slow, predictable, Swiss-style deflation.