&gt;True. And yet, it still means there is some pushing of demand into the future due to the deflating prices. Which means that your argument in the GGP post is false.<p>I never said deflation cannot defer people&#x27;s demand. The comment I originally responded to indicated that a deflation rate of 1% would, in general, discourage spending. I would wager, that almost no one defer buying an iPhone if they knew for a fact that it would be 1% cheaper a year later. Just as I don&#x27;t think that knowledge that the price would be 1% higher a year later would cause someone to buy an iPhone they were not already planning on buying.<p>What I&#x27;m getting at is falling prices, in and of themselves, are not a huge problem. If you want to say that a deflation rate of 20% would cause huge problems, ok, maybe that&#x27;s true for some products. Conversely an inflation rate of 20% would cause huge problems in some realms. Inflation is not generally good and deflation generally bad--that is the myth I&#x27;m addressing.