The Federal Reserve is bracing for deflation for the first time since the 1930s

Last month, the Federal Reserve announced that its annual stress tests on the largest U.S. banks would include a scenario of declining prices and wages in the economy, or deflation. Deflation is a scary proposition for central bankers and investors alike, and the fact that the Fed is including it in this year's stress tests is both reassuring that the tests will be so thorough, but it's also a scary omen that Janet Yellen and Co. think deflation could be on the horizon. Why is deflation so scary...