||The aim of my bachelor thesis, which is divided into 5 main chapters is to describe the phenomenon of deflation. In the first introductory and theoretical chapter are approached the economic fundaments and categorization of this issue. The following chapters 2-4 are devoted to the two, from the economist’s and my point of view, most interesting cases of deflation in the history: i.e. mild deflation in the second part of the 19th century and the great deflation during the Great Depression. I am addressing more contemporary issues connected with the signs of deflation in the economy in the 5th chapter. In this part of the thesis I analyze the mild, several years lasting deflation in Japan during the nineties and I also assess the present risk of deflation in other two leading economic world powers: Germany and the United States of America. The end of my thesis is devoted to deflation in the Czech Republic, which shortly occured in the year 2003 and started the expert’s discussions about deflatory signs in the Czech economy.