Indeed, if you use cash as unit of value, you will have this problem. And Keynes said that people prefer a rising cash income and rising price over a dropping cash income and dropping price. It is this basic instinct make inflative monetary policy seems reasonable
So you deem that laying off people and closing business is an issue arising from people (or economy as whole) using cash as unit of value? In other words, it is human nature that is at fault here, and deflation would be good if people were not what they are?
I remember you saying quite the contrary earlier. Did you finally understand that "on enterprise side" deflation (due to demand collapse) is a bad thing?
Exactly, using fiat money (that is created out of nothing) as unit of value is the main reason that we have waves and waves of financial trouble. But without cash, people don't even know how to measure value, since value is a very subjective thing, it changes based on supply and demand all the time. A universal standard of value never exist in reality: Even gold worth less near a gold mine
So, the banks must coin an abstract concept of "money", that fits into everyone's imagination. Since everyone need money to do trading, the demand is huge, you just need to create it based on those demand, that was what John Law discovered: Money is wealth, its value can be arbitrarily decided as long as people's trust on its value does not change
The reason that fiat money's value does not change is not because those fancy tricks banks are doing, it is because the trust to fiat money seldom changes, and the major task of banks is to maintain that trust. In fact, unless the country is extremely poor or you produce 10 times more money every month and pour them to factories to produce weapons during a war, the resilience of that trust is extremely high. FED just showed that printing 5x more money will not shake majority of people's trust in USD's value