European Bank Fights Deflation By CHARGING for Saving Accounts

[donquixote99]

With inflation, people try to get rid of cash. With deflation, it's stuff that's dropping in value, so people try to get rid of inventory. This basically means not making anything--no one likes making stuff that's going to drop in value. people get laid off left and right, which drives down demand, so there's more downward pressure on prices, and more layoffs.

This was the great depression. Death spiral.