From:
Columbia Business School’s Professor Laura Veldkamp was quoted in The Washington Post discussing how widespread calls for lower prices especially after a period of high inflation may be misguided. Veldkamp explained that if consumers expect prices to fall, they may delay purchases, which could depress demand and trigger a recession. She emphasized that modest price stability, rather than sharp deflation, may better support long-term economic health. The article argues that after inflation surged in recent years, a rapid return to pre-pandemic price levels could undermine wage gains, business profitability, and overall economic stability.
