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I think deflation occurs when the economy is in a downturn, therefore economists think it is bad. I myself would refer to "good" or "bad" kinds of deflation.
by LogicalBorg 13y ago
I think deflation occurs when the economy is in a downturn, therefore economists think it is bad. I myself would refer to "good" or "bad" kinds of deflation. It's OK when prices are falling due to technological advance (the "good kind"); that happens all the time and is not the same as a downturn (the "bad kind" of deflation).