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Deflation, What Does It Mean? What Should You Do?

Knowledge@Wharton

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November 24, 2008

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Deflation Cannot Be Ruled Out. What Does It Mean? What Should Small Business Do?

Many economic observers worry about the threat of inflation today. Now some analysts suggest we cannot rule out the possibility of falling not rising prices in other words, deflation.

We have not seen deflation in the U.S. in at least 80 years. In this podcast, Wharton Management professor Raffi Amit discusses what small- and medium-sized businesses should know about deflation and how they should respond.

"None of us have had to think about this in our lifetime," Amit says. "And those who will survive ... are those who will be proactive and manage their business in an ultraconservative way."

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