Irrespective of how deflationary forces might influence it, our economy has  1  A considerable economics literature in recent years has documented a decline in the volatility of real GDP over the past two decades. Some researchers have argued that the decline in volatility is the result of smaller disturbances to the macroeconomy.
Others have argued that improved monetary policy should be credited for the reduction. Another line of work points to structural changes that have increased the flexibility of the economy to respond to shocks.