Why Is Deflation Bad?
A number of readers have asked me to explain why deflation is a bad thing; and the truth is that while Ive alluded to the issue a number of times, Im not sure if Ive ever laid out the whole case. So here goes.
From Why Is Deflation Bad? – Paul Krugman Blog – NYTimes.com
Krugman explains Deflation. A must read.
