Some quality info to fight the deflation mythSubmitted by John23 on Sat, 05/26/2012 - 08:41
From the Fed itself........"Deﬂation and Depression: Is There an Empirical Link?" studying deflation in a historical perspective and if it actually leads to depressions:
Their conclusions "The data suggest that deﬂation is not closely related to depression. A broad historical look ﬁnds many more periods of deﬂation with reasonable growth than with depression and many more periods of depression with inﬂation than with deﬂation. Overall, the data show virtually no link between deﬂation and depression"