Deflation is something many economists have made out to be an economic bogeyman, saying that it could be the worst possible outcome in any economy.
Economists and investors would be rightly afraid, given the experience of Japan which is usually mentioned when deflation comes up.
However, deflation is rare in the economies of today. This is largely due to the policies of central banks that have engaged in a campaign to create a consistent inflationary environment for their own economies.
Japan is one example where deflation has had a severely negative impact. While it may sound scary, it isn’t or doesn’t have to be, despite the fears that most economist have about it.
This post will cover the impact of deflation on real estate, and is meant to be a primer on how to think about its impact on property investments.
What is deflation?
Deflation is a fall in …