The problem with instability - inflation or deflation - is that not all prices change at the same rate. The people with the least leverage or bargaining power (or who made the worst deal) get left behind. If prices get too out of balance but your boss can’t lower your salary, he just shuts down the business…
(Funny too that someone in 2003 made the comment that the housing market was out of control and headed for a crash. I guess it’s only Wall Street that couldn’t see that.)