Deflation hollow

A deflation hollow is a period during an economic downturn when overall prices in the economy are declining, leading to decreased consumer spending and investment. This decline creates a spiral where businesses earn less, cut back on resources, and lay off workers, which further reduces demand and causes prices to fall even more. The "hollow" refers to the shrinking economic activity and profits across industries. This cycle can be hard to reverse because both consumers and businesses delay spending, making recovery difficult and prolonged if not addressed with appropriate economic policies.