Just like anything, you have to have the right balance of deflation/inflation in the market + devaluation of currency. This is why the throttle is key, who controls it, on what basis. I think this is the exact opposite, I think devaluation of a currency over time allows markets, investment, loans to thrive. If your money is shrinking you have to invest, the market will beat the mattress stash over time always due to this.

When you invest you create bigger dollars. Someone paying interest their actual value of their dollar might be .85-.95 where the person collecting 5% interest is collecting 1.05 during that same period simply by investing rather than money sitting at 1.00 doing nothing or shrinking due to devaluation.

I sum it up as this, poor people pay interest, rich people collect it. Without devaluation of currency and if the currency just naturally grows at a rate at or higher than inflation or deflation for too long, why invest then, why take the risk if your money grows without investing? The feudal gold conundrum - the mere fact of people being born makes you richer because they have less and there is limited supply? Supplies have to increase, thus currencies have to be devalued. Devalued currencies lessen risk of investment because if you aren't investing you are holding smaller dollars over time. This fuels products like the 30 year mortgage even more, without this banks wouldn't loan as easy. People don't invest as much in deflation because they are overpaying or buying high, holding onto cash is better during those times, so increasing circulation and spending actually fuel investment due to devaluation. It is all a balance and has and will continue to evolve, it works for the most part with fiat levers to get through turbulence and momentary irrational behavior.