I’ve never accepted the theory that deflation-expectation makes people hold off purchasing a product.
Don’t get me wrong, if prices are going to fall 50%, then by all means yes.
But where deflation is at -2%, it’s not going to stop people buying, just as 2% inflation doesn’t prompt people to rush out and spend all their money instantly.
In fact, the computer industry will tell you how deflation has no meaningful effect on their day-to-day sales.
The fact remains, lower prices are always good for the customer.
Unless of course, it’s asset prices.
Low asset-prices are never a good thing and we must move heaven and earth to prevent such a catastrophe.