Fri, 30 Jul 2010 12:08:04 +0000
Deflation -- it sounds like fun. Things get cheaper, right, so what's the big deal? Sadly, a widespread slide in prices has more nefarious effects than that other bugbear, inflation, first because it signals a retreat in demand and, second, because people quickly understand that if they wait longer, they will have to pay even less -- a vicious cycle spurred by a seemingly harmless virtue, thrift.
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