Of course, lower oil prices are bad for oil producers, as many articles in your first response supports. Yes, you can of course find a lot of links, that's because those who write for business and investment journals want to talk about deflation.
Here's a paper from the ECB (http://www.ecb.europa.eu/pub/pdf/other/mb201406_focus05.en.pdf), the folks who are actually responsible for keeping inflation in check while avoiding deflation rather than just writing about it. Their stuff is of course a lot harder to find, but I'd put far more faith in what they're saying. They use historical examples and such. It's only five pages and has pictures, I'd recommend it.
There are also a lot of articles which really take Mario Draghi's comments out of context. When someone asked him earlier this year if he saw that deflation was more of a risk this year than last, he agreed it was but that the risk was still minor. The first part of his response is what made the headlines. Vitor Constancio made a fairly clear statement (http://finance.yahoo.com/news/europe-not-risk-full-blown-deflation-ecbs-constancio-143552547--business.html) about what would trigger deflation in the EU. The Fed is even less concerned about deflation.
Dropping energy prices don't create the feedback mechanisms that cause deflation. Yes, they certainly affect prices across the board, mostly in food but in many other areas. However, the drop in oil prices don't create an expectation of future oil prices in the same way that drops in wages or asset prices do. People who earn less will spend less, triggering further downward pressure on rates. Dropping asset prices will trigger less demand by investors for those assets, further driving down prices. Lower fuel prices will increase higher demand for fuel and also put more disposable income in people's pockets, neither of which depress the economy.
no subject
Here's a paper from the ECB (http://www.ecb.europa.eu/pub/pdf/other/mb201406_focus05.en.pdf), the folks who are actually responsible for keeping inflation in check while avoiding deflation rather than just writing about it. Their stuff is of course a lot harder to find, but I'd put far more faith in what they're saying. They use historical examples and such. It's only five pages and has pictures, I'd recommend it.
There are also a lot of articles which really take Mario Draghi's comments out of context. When someone asked him earlier this year if he saw that deflation was more of a risk this year than last, he agreed it was but that the risk was still minor. The first part of his response is what made the headlines. Vitor Constancio made a fairly clear statement (http://finance.yahoo.com/news/europe-not-risk-full-blown-deflation-ecbs-constancio-143552547--business.html) about what would trigger deflation in the EU. The Fed is even less concerned about deflation.
Dropping energy prices don't create the feedback mechanisms that cause deflation. Yes, they certainly affect prices across the board, mostly in food but in many other areas. However, the drop in oil prices don't create an expectation of future oil prices in the same way that drops in wages or asset prices do. People who earn less will spend less, triggering further downward pressure on rates. Dropping asset prices will trigger less demand by investors for those assets, further driving down prices. Lower fuel prices will increase higher demand for fuel and also put more disposable income in people's pockets, neither of which depress the economy.