Is Deflation Good or Bad?
https://political-economy.com/is-defl...
There is good inflation and bad inflation. Because the Great Depression corresponded with a period of deflation economists, have made the assumption that deflation is bad. This is a normative judgment without looking deeper into the facts and data. The research suggests that falling prices are the mechanism for the economy to fix itself. If there is central bank intervention, such as in the 1930s or in 2008, there is evidence that this is countercyclical and potentially could prolong the recession.
Deflation is an indication production is becoming more efficient through technology and capital investment.
One of the costs of fighting deflation, just as current central bank policy is the Gini coefficient increases, and the poor, and middle class do not benefit in the same way as do the banks and the first receivers of monetary intervention. Clearly, more research needs to be done in this area.