Since falling prices beneﬁt customers, deﬂation is always considered to be good for an economy.

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While falling prices may benefit consumers in the short run, deflation can lead to a decrease in consumer spending, lower production and ultimately economic recession. Deflation also increases the real value of debt, making it harder for individuals and businesses to repay loans. Therefore, deflation is not always considered good for an economy.

Since Falling Prices Beneﬁt Customers, Deﬂation Is Always Considered to Be