The Internet has improved efficiency in a wide range of industries, such as grocery store inventory. Has it had a deflationary effect on these industries? I do not know.
It has deflated goods and services directly produced by the Internet itself, such as publishing books. Amazon Kindle books are much cheaper than printed ones. But has it reduced the cost of carrots? Hard to say. Energy has a direct impact on the cost of even more goods and services than the Internet does, so I suppose cold fusion might be deflationary across the board. One way of describing a deflationary effect is to say it improves productivity. I think those are two sides of the same coin. - Jed
