"The Impact of Persistent Inflation on the Global Economy"

Many Americans are frustrated with high prices and wish for deflation, but economists caution that sustained deflation could harm the economy. Deflation, a widespread and sustained drop in prices, can discourage consumer spending, leading to layoffs, pay cuts, and a potential deflationary spiral. It also makes inflation-adjusted loans more expensive and can cause a recession. While falling prices may benefit consumers in some ways, the overall impact of deflation on the economy is seen as damaging.