In my original post #170 I said,
"Inflation favours those with debt while penalising savers.
Deflation penalises those with debt while favouring savers."
I think we can agree on that, yes?
I would not even agree with that, as long as inflation or deflation is steady and expected, for the simple reason that interest rates are compensated for it.
Someone in debt might think that inflation is good for him. But at an inflation rate of 2%, his nominal interest rate on his debt will be 2% higher than without that inflation. So normally he doesn't win anything.
The only winners of inflation are those that take a benefit on money and interest FLUXES. Those are higher with inflation. There are two kinds of organisations that do this: financial institutions and states.