[freejulian]

> Inflation encourages reinvestment.

Inflation encourages malinvestment. There's always a motivation to invest and earn money from selecting profitable ventures. Inflation forces people to be less selective.

> In a deflationary environment, one need only hold currency or inert commodities in order to have greater future purchasing power.

This is only true if you ignore taxation. The government is perfectly free to tax people's wealth if they feel hoarding has become problematic.

>In an inflationary environment, it is everyone, holders-of-capital included, who must continuously work to preserve purchasing power.

Nonsense. People with money always find a way to escape inflation. Take a look at real estate.