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Deflation can be particularly dangerous when a financial system is shaky, with household and corporate balance sheets in poor shape and banks undercapitalized and heavily burdened with bad loans.

Ben Bernanke

Ben Bernanke

BadBalanceBalance SheetsBanksBurdenedCorporateDangerousFinancialFinancial SystemHouseholdLoansParticularlyPoorShapeSheetsSystem

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