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Inevitably, technical deflation leads to a restraint in the generalpricelevel.
2
In the long run, the generalpricelevel adjusts to the change in the money supply.
3
But is this really deflation, in the sense of an ongoing fall in the generalpricelevel?
4
The generalpricelevel rises.
5
The generalpricelevel is fair, but here again there are exceptions both ways, some items being poor while others are excellent.
6
Deflation, a decline in the generalpricelevel, is harmful during a recession as consumers and businesses may delay purchases in anticipation of lower prices.
7
Increased consumption (both public and private) coupled with moderate asset price inflation prevents an outright monetary deflation (=a downward spiral in the generalpricelevel).