In an article in the American Free Press, Professor Peter Spencer of York University in England is quoted as saying: "This printing of money 'will keep the [deflation] wolf from the door.' " In the same article, Ambrose Evans-Pritchard, a writer for the London-based newspaper The Telegraph, is quoted as saying: "Deflation has ... insidious traits. It causes shoppers to hold back. Once this psychology gains a grip, it can gradually set off a self-feeding spiral that is hard to stop."

1. What is price deflation?
2. What does Professor Spencer mean by the statement, "This printing of money 'will keep the [deflation] wolf from the door' "?
3. Why would deflation cause "shoppers to hold back," and what does Evans-Pritchard mean when he says: "Once this psychology gains a grip, it can gradually set off a self-feeding spiral that is hard to stop"?
4. Source: Doug French, "We Should Celebrate Price Deflation," American Free Press, November 17, 2008.