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Message:: [QUOTE="medoraman, post: 964389, member: 26302"]Monetary deflation is systemic I agree. But if the price goes down for a segment of purchases, what do you call it? If it goes up it is called inflation, so...... Deflation is simply a lowering of the price of a certain basket of goods, nothing more or less. The causes can be differentiated, but not the effect. I was just trying to show how we experience lower prices periodically, and how deflation would not hit you over the head at first. Most people do not recognize deflation when they see it. To Silversurfer, the free months rent was just the beginning. Landlords were also cutting rents to existing tenants, and making deals to get new ones in. A few months free rent is deflationary, since their average housing cost went down. The burger promotions are also deflationary. I don't know about you, but if I go to McD I only order the double for $.99. My cost for meals there has decreased. What I was trying to illustrate was small things we do not think of as deflation really being so. The OP asked what to look for, and those would be examples. These are simple ones not damaging the economny per se, but once consumers start to EXPECT these price lowerings, that is when it is bad. Consumer expectations of either deflation or hyperinflation is the real damage, since they will change behavior accrodingly.[/QUOTE]