Deflation is falling prices of commodities in a lasting and continuous manner
Deflation is the opposite of inflation where prices go on soaring relentlessly with no signs of taking the reverse route.
Deflation gives the money in the hands of the consumers more purchasing value.
Wage reduction is a feature of deflation. In other words, employees have lesser purchasing ability.
Deflation increases unemployment as the employers resort to large scale retrenchment occasioned by reduced consumption and production.
Market sees less money circulation.
Industry and business see less money infusion.
Banks and financing institutions search for borrowers and the funds lent by them are always going to be less due to the rising intrinsic value of money.
Industry and business become sick because of lesser demands for products.
Banks get less money for lending purposes.
Value of real assets and liquid assets like gold, diamonds, etc. Decline rendering it difficult to dispose them off.
If money circulation remains static and population goes on increasing, the per capita share of money becomes less, but more valuable.
A deflationary situation sees interest rate cut in deposits and advances.
The central government of a country may come forward to reduce corporate and individual taxation so as to make more money available in the market for industry and business to make some headway.
Government spending should increase on infrastructure, health care and education particularly and in all other public and corporate-interest areas selectively.
The last two points are my suggestions, but those may not be construed as remedies as they may or may not work.
