Here's an interesting article about deflation in China. From a Gesellian perspective, the root cause of both inflation and deflation are the same — a flawed form of money. Conventional debt-based fiat money circulates too quickly when prices are rising (inflation) and too slowly when prices are falling (deflation). We get the worst of both worlds. Our money causes prices to rise more when they are already rising and it causes them to fall more when they are already falling. Thus money amplifies and perpetuates the natural ups and downs of the economy.
Excelente article by Gesell, Silvio, about natural ecomic and this is a good ponin for it start in a new POV about economic.