:> Saw something of interest which applies somewhat to this thread, both :> because the basic economics applies to the UK too and because if :> anything like this hits America at the moment then global deflation is :> pretty near a certainty: :> :>
It depends on the circumstances engendering it. If it's the cure to a credit bubble then in the long run it's a good thing because it liquidates debt and redeploys assets and labour away from malinvestment and towards whatever investment will drive the next boom. For some caught with falling assets and rising debt raised to finance those assets, or those caught in the middle of being redeployed, it might not seem a good thing for quite a while.
The real question is would we be better without asset or credit bubbles or is the pain afterwards worth the gain?
FoFP