Great recessions and depressions always bring on the threat of deflation. Once they cause collapse they are hard to revive. Japan of the past two decades is a good example.
However, what is the bigger threat? That of deflation, or constant stimulus injections of failed Keynesian principles, which the Federal Reserve is resorting to now?
That is setting the stage for another future financial bust of epic proportions.
Especially in the light of the ultra-trillion dollar budget deficits brought on by ObamaCare, to go with energy and other environmental planning.
Many economists worry more over the fight about immediate deflation. History tells us that deflation is a shorter-term problem. Only a minority of economists look at the deflationary possibility. ( See the Earl J Weinreb NewsHole® comments.)
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