A more sophisticated and in-depth story on the effect of deflation on the economy than the one on the same topic that led yesterday's Christian Science Monitor (see links). The Post examines deflation for a range of industries and goods, and brings in some key economic experts to justify the rationale that low prices could delay economic recovery. The lead is a little kitschy, but that's just a quibble. I would expect most news consumers to come away from this with a decent ... More »

Does a solid job of explaining the deflation phenomenon across sectors, I do wish analysis at the end, suggesting a different root cause, would have been further expounded.

At a time when so people understand exactly what is happening in the financial markets, it is refreshing to see someone connect a few dots. This story did a good job at showing how interconnected the economy is, and how one aspect directly impacts others. A wide variety of sources helped prove this point.

Finally we are informed about the inevitability of another prolonged Depression, and since most of us were born after the last one, analysis here begins to explain what that world resembles. What we need are financial leaders with tools to fix a service economy--from Apple to Expedia, from Starbucks to Second Life, from Microsoft to McDonald's--that manufactures little but spends much. The subprime crisis triggered a domino effect of greed, and now everyone pays the price.

Economics is a science on par with theology, in that predictionsmost often will not come to light during one person's lifetime. As Keynes stated, to the effect thatthese theories only apply in the short run, in the long run, they don't matter because we're all dead. A correction to cover the hidden inflation of the last bubble period while it may be painful, is entirely necessary. Greed and speculation 's price will be paid by all, not the beneficiaries.

An in-depth article which uses a wide spectrum of industries, consumer spending, and retail prices as examples the dangers deflation poses to the world’s economy: consumers halting spending, unsold goods, huge inventories, reductions in manufacturing, losses of jobs, shortages of new jobs, crashing stock prices, repossessions of homes–all ingredients of 1932.

An excellent article, lots of current data and sensible scenarios for the possible changes in the future. Does an excellent job regarding business sector impacts. Good clear view and well presented.

Doesn't address inflation and deflation, just price changes

A very good summary of where the economy is going and the unbending attitude of the powers that be to get us on the growth escalator again.

An error is that the cost of tar sands oil production is $35 to $45 per barrel, not $65 as claimed in the article. Prices could probably fall far below $35 before production would be cut back. Obama's taxing plans make zero sense if there is deflation, an important point not mentioned.