Changes

'''Deflation''' is when the value of paper money (e.g., a dollar bill) increases over time.  The cost of goods "deflate" in their prices, so that what cost $1 last year may cost only 80 cents this year.  Annual interest rates on savings can become negative rather than the usual positive, as depositors may have to pay banks to safeguard the money.

'''Deflation''' is when the value of paper money (e.g., a dollar bill) increases over time.  The cost of goods "deflate" in their prices, so that what cost $1 last year may cost only 80 cents this year.  Annual interest rates on savings can become negative rather than the usual positive, as depositors may have to pay banks to safeguard the money.

'''Deflation''' is the opposite of [[inflation]], but liberals consider deflation to be worse.  The [[Great Depression]], for example, was characterized by deflation.

'''Deflation''' is the opposite of [[inflation]], but liberals consider deflation to be worse.  The [[Great Depression]], for example, was characterized by deflation. Japan has struggled with deflationary forces since the mid-1990s.<ref>http://www.japantimes.co.jp/opinion/2017/03/29/commentary/japan-commentary/the-truth-about-deflation/#.WV7wq-kpCUk</ref>

But some disagree with the liberal view of this.  As one observer points out, "[t]he period of the greatest growth in the U.S. during the nineteenth century, from 1820 to 1850 and from 1865 to 1900, was associated with significant deflation."<ref>http://mises.org/library/what%E2%80%99s-so-scary-about-deflation</ref>

But some disagree with the [[liberal]] view of this.  As one observer points out, "[t]he period of the greatest growth in the U.S. during the nineteenth century, from 1820 to 1850 and from 1865 to 1900, was associated with significant deflation."<ref>http://mises.org/library/what%E2%80%99s-so-scary-about-deflation</ref>

== Forces of deflation ==

== Forces of deflation ==