'Deflation may be one of the most daunting policy challenges facing policymakers today. What makes deflation particularly challenging is its multifaceted nature and its newness for the current generation of economists and policymakers. With his extensive knowledge of history and the current debate, Pierre Siklos brings together an essential collection of readings that surveys the key aspects of deflation - from the microeconomic costs to the implications for monetary policy. This volume offers a concise, yet rich, overview of the economics of deflation and will be an indispensable reference for policy makers, their staffs, economists and all those grappling with the complexities of the phenomena called deflation.' - Andrew Filardo, Bank for International Settlements, Switzerland This collection of seminal papers examines how economies behave under deflationary conditions. The volumes cover both theoretical and empirical aspects of this important subject. The editor presents articles exploring whether, and under what conditions, deflation can lead to beneficial economic outcomes, and also articles emphasizing that deflation should be avoided at all costs. Further sections examine specialized topics of the economics of deflation; including wage rigidities, the liquidity trap, and the zero lower bound of interest rates. A selection of important case studies of economies in deflation completes this comprehensive collection.