Where can deflation occur?

Answer 1

if you are talking about price deflation it can occur any where.

In places that use Fiat currency it is somewhat unlikely because initiating a deflation causes a recession and because the people controlling the money have to sacrifice purchase in order to take money out of circulation.

In places that use commodity currency it can happen if their is a decline in the production of the commodity or an increase in demand.

If you are talking about wind deflation this is most likely to happen when their is an non smooth surface such as a hill or mountain.

Answer 2

Deflation can occur in the economy when there is a decrease in the general price level of goods and services, leading to an increase in the purchasing power of money. This can happen due to a decrease in consumer demand, technological advancements leading to lower production costs, or a decrease in the money supply.