Moreover, when Switzerland experienced falling prices for around 5 years, rather than economic downfall there was economic growth. Rather than the expected rising unemployment, there was a decrease.
No,
it hasn't, and Switzerland's is a different case altogether, it has a high income per capita generated by the service sector, its currency is used as some sort of save haven in a lot of cases, is benefiting from tourism and a lot of money inflow in spending.
Even with that the only time in the last decade it experienced deflation it also triggered a decrease in GDP, as for the unemployment is has always been this century between 2-4% hardly an indicator of it, and the economic growth in the 2%.
But the most important thing is that Switzerland's population keeps increasing, from 7.8 million to 8.6 million, that 10% in a decade, its neighbor Austria grew from 8.3 to 8.9m, that's 7%, we go one border east and we have Hungary which went down from 10 to 9.7.
You can't replicate that to anything else than micronations or small countries.
There was this
study whose findings were released in 2004 which argued that recent cases of deflation were actually economically good rather than bad.
We focus on the price level and growth experience of the United States, the U.K. and Germany from 1880-1913.
Hardly relevant today, we're talking of a period when less than 15% of the women were employed, just as one
tiny difference.