Is Deflation Good for Workers?

A key underlying cause of the financial crisis was a fall in real wages. A bit of deflation may be just what consumers need

Over the past 10 years we've been trained to treat deflation—an actual fall in prices, as shown in today's consumer price index (CPI) release—as a horror to be avoided. Could it be that in this case a whiff of deflation may help us get out of the crisis?

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