Deflation 101

A quick and easy guide to deflation.

By Kim Peterson Sep 7, 2010 2:15PM
Deflation © Meiko Arquillos/Getty ImagesSo things get cheaper. How is that bad?

For the answer to that question, check out the "visual guide to deflation" at the Mint blog. It's a really nice overview of deflation, what causes it, what does it do to the economy and how do we fix it.

The guide is actually a little dated, but it's being resurrected by some financial types this week because deflation concerns are weighing heavily on economists' minds lately.

Say what you will about the guide's Keynesian tendencies (and plenty of people in the comments do). I still like it as an easy-to-understand explainer.

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