In an interview in the studios at Consumer Reports, Editorial Director Kevin McKean spoke to Nouriel Roubini, a professor of economics at New York University’s Stern School of Business, about the recent drop in prices for some consumer products. While that might seem like a good thing for cash-strapped consumers, Roubini warns that deflation could bring more trouble.

"There are different types of deflation. There is good deflation and there is bad deflation. And we are now in a period of bad deflation," Roubini said. "Right now there is too much supply and not enough demand."

To hear the rest of the Roubini interview, watch the video.

Roubini spoke recently with the staff of Consumers Union. This is the third in a five-part series.

Part 1: It’s not all bad news

Part 2: Surviving the next year