From:
Columbia Business School Professor Laura Veldkamp spoke with Wellbeing Whisper reporter Lucas Bennett about why declining prices—often celebrated by consumers—can actually signal economic trouble. Veldkamp explained that if consumers expect prices to continue falling, they may delay purchases, reducing demand and increasing the risk of a recession. She noted that sudden or widespread price drops can also reflect weakening business confidence and tightening labor markets. Her analysis underscores the importance of stable prices for sustaining healthy consumer behavior and long-term economic growth.
