I know what the idea is, but is it actually true in practice? If the rate of deflation was, say, 2%, who would actually hoard cash just because it’d be supposedly worth 2% more? I highly doubt customers would, especially since it’s not like businesses would automatically cut prices by 2%. As for businesses, why would they hoard that cash when they can make investments that would increase the amount of cash they have? Surely, if a 2% increase in value was so worth hoarding cash, why aren’t they all just hoarding cash into interest-paying accounts that pay 4% in a 2% inflation environment? Constant inflation has been the prevailing theory, but it doesn’t mean it’s the optimal setup.