You are saying that there won't be any growth because people will hoard all money because they want to participate in the (non-existing) growth? Isn't that self-contradictory?

I think you are wrong. Imagine living in such an economy and facing the choice between hoarding (4% deflationary gain) and a good investment (10% gain). What would you do? All I see happening is that less money is being spent on bad investments due to artificially low interest rates as it happens to today.