OT Ashley,
Deflation has been a fact of life for more than 3 decades in semiconductor electronics. This is one major example of deflation being a great thing.
Without that deflation, we wouldn't have ubiquitous PCs, VCRs, DVDs, Broadband to the home, Cellular, PDAs, ...
This deflation has spurred innovation, growth as well as facilitating many benefits to mankind. It's also contributing to lowered biotech R&D costs.
If one has cash, deflation is wonderful. If one has a current account deficit approaching the size of that which the US has, Deflation could be quite frightening.
IMO,
Ian |
