Quote from: Allurestorm on March 04, 2015, 01:07:24 AM

We are being told deflation is bad for our economies and this is used as excuse from our central banks to print more money and destroy our savings/currencies. What they say is that in a deflationary environment, the price of goods falls so people would not buy anything and would rather wait to buy in future, therefore slowing the economy. If so why smartphones sell like hot cakes? their price is falling and people are buying them actually because of that. Maybe because each time the price decreases customers feel like they are getting a good deal, therefore are prompted to buy!!

Don't know if the smartphone prices are actually falling (apart from the obsolete models, of course), but if this is really the case, then we see technological innovation and competition at work driving the prices down. Regarding people not buying anything, you evidently don't see the whole picture. What matters more here is producers' profits decline, which is the primary cause of the drop in demand (in the majority of cases, at least).