Looking back at the past period of deflation, a vicious cycle continued, in that households and firms became reluctant to consume or invest and postponed spending, which consequently decreased income and led to a further decline in spending. This vicious cycle ended with the introduction of quantitative and qualitative monetary easing (QQE) in 2013.
According to the aforementioned Federal Reserve study of current account corrections in developed countries, although the large majority of episodes were characterized by some significant slowing of economic growth, most economies managed the adjustment without crisis.