&gt; Are there any examples of deflation actually being harmful in an economy?<p>According to the Federal Reserve Bank of Minneapolis, no:
<a href="https:&#x2F;&#x2F;www.minneapolisfed.org&#x2F;publications&#x2F;the-region&#x2F;deflation-should-the-fed-be-concerned" rel="nofollow">https:&#x2F;&#x2F;www.minneapolisfed.org&#x2F;publications&#x2F;the-region&#x2F;defla...</a><p>In fact, one of the theorists there suggested a rate of -3% (or 3% deflation) might be optimal.