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

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

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.

More from Ed Dolan:

• Prices are Falling in the Eurozone, but is it "Real" Deflation?
• As Unemployment Rate Hits a New Low, More Slack Remains in the Labor Market than Meets the Eye
• Procyclical Fiscal Policy in Greece and America: Two Charts that Tell the Story
• Update: By One Measure, It's Now Cheaper to Drive Than Ever Before
• What Lies Behind the Plunge of the Ruble?