Europe’s problem isn’t just the deflation

Leonid Bershidsky writes:

For more than four years, consumer prices in Switzerland have risen at an annual pace well below 1 percent. In 2012 and 2013, the country even experienced deflation. Yet its economy has grown at a steady pace, and is expected to expand by 2 percent this year. The unemployment rate is a low 3.2 percent.

He makes some good points, but I think he is too complacent about the costs of deflation for less flexible economies.