Given that inflation has been set up as such a bogeyman in past years, one might assume that deflation would be benign. In fact, it would open up many profoundly difficult issues. The first of them is that despite the inequities of inflation, it makes economic growth far more probable. Companies that take on debt have to pay back what they borrowed in dollars that are worth less. Indeed, this was the mechanism which was used to reduce national debts to a tolerable level after they rose during the World War II years.
Deflation has exactly the opposite effect.
If prices are going to be lower in the future, it makes sense to put off purchases. Debt will be more expensive to repay rather than cheaper. In addition, once the markets recognize that prices will fall rather than rise, interest rates will fall. This is certainly the answer which will be advanced by economists, politicians and most communication gatekeepers. Growth can be encouraged and the limits which have been so far been assumed can be greatly exceeded.