[BfloGuy]

Deflation is horrible for the overall economy, in that workers lose jobs and some people are afraid to spend money.

Price deflation, in and of itself, is not harmful. It is the cause of the deflation that matters.

Price deflation caused by improvements in technology that allow more efficient production (i.e., computers over the last couple decades) is beneficial to both consumers and producers.

It is the deflation caused by government tinkering with the currency -- as is the case in Europe -- that is harmful and leads to the effects you describe.

[arrogantsob]

Deflation and Inflation are price changes across the board in an economy and not correlated with a decline in the price of computers or tvs or an increase in the price of oil or food.

Those categories are monetary phenomenon provoked by government monetary policy not a reflection of supply/demand conditions in the economy or its parts.