Ultimately, these factors point to the fundamental cause of deflation – lack of demand. C.  Remedy for deflation: unlocking and capturing potential demand  It is necessary that we confront and find a way to tackle this fundamental cause of deflation: the lack of demand.
Deflation cannot be solved just by generating sustainable demand that is large enough to close the output gap, as the problem does not lie solely on the demand side. What is important is where to unlock demand and how to capture it on the supply side.