I'm glad you've abandoned "FDR was deflationary." That was silly, but maybe if it convinced you that you need a history review it wasn't for nought.

I'm disappointed to see that you aren't engaging with the core observation that Germany's inflationary and deflationary episodes were separated by the better part of a decade. That's why they are ripe for compare+contrast. You can't learn anything by bungling them together. You could do with a review here too.

> What actually matters is formation of new businesses and capital. Monetary inflation doesn't help

Except by funding those businesses, which wouldn't happen in a deflating economy. Or a recently defaulted economy. Obviously, this isn't sufficient for success -- but it is necessary for success.

> Just forgive the debts directly.

History is no stranger to hard default. There's a reason why nobody who can choose soft default (inflation) chooses hard default.

We've been operating under an inflationary monetary regime for a century, it is very easy for recency bias to convince you that the grass is greener on the other side. So easy that it happens by default, unless you counteract the default by intentionally seeking out century+ old accounts of deflation both on the ground and on the macro level.