“deflation which is a GENERAL drop in the price of things across the economy. That is evidence that something very bad is going on in the economy.”
I spoke about them both separately to show the author was confused. The author made it sound like deflation was in itself a cause of economic conditions. In his title “Is Deflation Really Bad for the Economy” and the article the author says that deflation is good for economy.
Falling prices are good for everyone. General deflation is not a cause but rather an effect of a severe economic downturn. It is a symptom of lack of demand which will lead to production being unprofitable which will lead to a downward economic cycle.
Can’t argue with that. Terrible article.