But economists are worried about something more sinister: The prospect that a harmful deflationary cycle could develop at a time when central banks are running out of ways to respond.
If households and businesses expect prices to stay depressed for a long period, they may postpone spending and investment, triggering a downward spiral in economic activity and prices. Deflation also makes it harder for countries to pay off debts, and can force weak economies to cut wages to compete globally.
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