IMO: It seems that the issue ignored when discussing deflation is the persistent belief that a decrease in prices is a negative. Decreasing the price isn't decreasing the value, its just changing the indicator...the currency becomes more valuable so the effort required to earn it becomes more valuable, etc. Emotionally it feels like a bad thing, but ultimately you end up with a reset of the value scale, not a devaluation of the goods/services. The reset process is painful because of the dependencies and rate of correction on the production side.
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IMO: It seems that the issue ignored when discussing deflation is the persistent belief that a decrease in prices is a negative. Decreasing the price isn't decreasing the value, its just changing the indicator...the currency becomes more valuable so the effort required to earn it becomes more valuable, etc. Emotionally it feels like a bad thing, but ultimately you end up with a reset of the value scale, not a devaluation of the goods/services. The reset process is painful because of the dependencies and rate of correction on the production side.