The eurozone is in deflation. It's official. Inflation's fall into negative territory was confirmed Wednesday, with consumer prices down -0.2% in December. Analysts have been fretting about it for months, and it's likely to get worse in the coming months. But why does it matter? It's hard to convey that falling prices can be a bad thing, since they seem like such an obviously positive thing in everyday life. But there's an extremely negative side to deflation Economists sometimes say "don't reason from a price change" for this reason. If a price falls, that could be because the supply of something is going up. If ... (full story)