> A really big factor is that people get upset when the number describing their wages goes down. I doubt whether that is still the case in a (hypothetical) eco

> A really big factor is that people get upset when the number describing their wages goes down. I doubt whether that is still the case in a (hypothetical) economy that is largely deflationary. In the current context, sure - but to me that seems largely a result of people being used to inflation, and I doubt that that association lasts if inflation is no longer the standard situation. > Businesses are also disinclined to lower their prices (this isn't a rule, sure businesses lower prices, it's a description of long term aggregate behavior). Can you elaborate on that?