The Deflationary Trap: Europe Has Already Fallen

The NYT had an interesting piece about growing opposition to Germany's creationist economics. The piece reports that France and Italy are leading the opposition to German's insistence that austerity is the key to economic growth, in the face of massive amounts of evidence showing that the euro zone needs stimulus to boost growth. 

At one point the piece points to worries over "the prospect of falling into a deflationary trap." It is difficult to see what anyone would be worried about. T...