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Deflationary Spiral Simulator

Interactive deflationary-spiral simulator: trigger a price-decline shock, watch expectations of further falling prices push consumers and businesses to delay purchases, weakening demand and forcing further price cuts — then apply a stimulus intervention to try to break the self-reinforcing loop.

Economics & Social Systems3DModerate60 FPS

Deflation looks harmless at first — cheaper prices sound like a win for consumers. This simulator isolates the mechanism that makes it dangerous: once people expect prices to keep falling, delaying a purchase becomes the rational move, and enough households doing that at once starves current demand, forcing businesses to cut prices again — which proves the expectation right and restarts the cycle. Trigger a price shock to start the spiral, then try to break it with a stimulus intervention of your chosen strength.

⚙ Under the hood

Trigger a price-decline shock and watch consumers delay purchases as they come to expect further falling prices, weakening demand and forcing more price cuts in a self-reinforcing deflationary spiral — then try a stimulus intervention to break it.

DeflationDeflationary SpiralPrice ExpectationsAggregate DemandMacroeconomicsStimulus PolicyThree.js

3D · Three.js / WebGL renderer · 60 FPS target · runs fully client-side, no install