Having a quarter or two of deflation is not a tru, 1930's-style deflation (although it gets the media all in a tizzy). This is 1930's style inflation:-
This is the kind of one or two quarter (max.) "deflation" you get in a fiat-based world:-
A falling, but still positive, rate of inflation is "disinflation", not "deflation". Deflation only happens with a truly negative rate of inflation. The population only feels inflation when the majority of the time is spent in deflation, rather than when there are occasional dips below zero.
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