Period of deflation Deflation is the price reduced, the opposite of inflation. In economic science, a period of deflation indicates continued, generally falling prices. http://adkoutreach.org has details Economic crisis even more devastating Historical deflation in some cases triggered the economic crisis even more devastating than hyperinflation. Deflation occurs when weak demand outpaces the market. With falling prices is also losing income from capital and labor. Companies must reduce or close, while workers become unemployed or must accept a lower pay….