PRESENTING: An Economics Professor Explains The Danger Of Deflation In 24 Simple Slides

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deflated balloon

Flickr, William Hook

Deflation has some ugly side-effects.

If you're living in Europe, deflation is already here. Deflation means that inflation is plunging, so prices are dropping.

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So what's the big issue? If rising prices (inflation) are generally considered a bad thing then shouldn't falling prices (deflation) be a good thing?

Well, yes and no.

Economics professor Ed Dolan is on hand with an easy-to-understand presentation (no economics degree needed), showing the circumstances in which deflation can be a good and bad thing.

We've republished the slideshow with Dolan's permission here and you can check out more fantastic economics presentations over at his blog.

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