The Problem is not the Specter of Deflation, the Problem is the Inflation Rate Is Too Low

Okay, this is no longer amusing. Can we stop the nonsense about deflation. It doesn't make a f***ing bit of difference whether prices are rising at a small positive rate or whether they are falling at a slow rate, except for the fact that the inflation rate is lower.

This really should not be hard to understand. The inflation rate is a composite of millions of price changes. When the inflation rate is very low, as it is now in the euro zone, a large portion of these price changes are already...