Deflation seem good (stuff I buy is cheaper!) but the problem is psychological. Say deflation is 10% one year. Everything you buy goes down in cost which is g

Deflation seem good (stuff I buy is cheaper!) but the problem is psychological. Say deflation is 10% one year. Everything you buy goes down in cost which is good. However, if you're on salary, then from your employers perspective you are now 10% overpaid (assuming you were previously paid the market wage). In years with inflation, businesses can give raises across the board, but rarely would a business cut all their employees pay by 10%. It would be bad for morale. Instead they lay off 10% of the workforce. People aren't willing to accept pay cuts in times of deflation as easily as a yearly pay increase.