Should we embrace "good deflation"?

With UK headline CPI inflation now running below 0 percent, is there a case for slight benign inflation and should we be happy with current conditions? Ben Southwood, head of research for the Adam Smith Institute argues that there is good deflation and there is bad deflation. In the current environment we have rising asset prices, increasing nominal incomes and decreasing unemployment, despite running a negative headline CPI - something that Mark Carney has stated should be embraced in its transient form as an unambiguous positive.