[csense]

Having lived through the 1990's, "Deflation = bad" is a claim I am very skeptical of.

In the 1980's and 1990's computer industry, your dollars could buy a lot more megahertz or megabytes every year.

If the "deflation = bad" people were correct, everyone should have held onto their dollars waiting for next year's tech, knowing it would be a lot better than this year's tech. No one should have wanted to buy computers, and the tech industry should have been in a gigantic depression.

[Panzer04]

There's a difference between deflation due to productivity growth and deflation due to lack of money. Deflation is good if it's the result of us producing more of a thing better and thus driving the price down.

Broad-based deflation due to a lack of money to buy goods and services is bad.