Deflation - Theory and Consequences for Private and Company Behaviour - Paperbackby Clemens Jger (Author), Katharina Ciesla (Author) Deflations and depressions are extremely rare. The last severe deflationary depression occurred over 70 years ago. Most economists these days have lost their fear of another deflationary disaster. Events like the dotcom burst, the terrorist attacks of 9 11 and the recent subprime mortgage crisis, however, show that our financial systems and economies are not entirely invulnerable. A terrorist attack