Not that it matters [after all, in the long run we are all dead] but I believe you might be confusing cause with effect.
A Definition: Deflation = Increasing Per Unit Purchasing Power
As far as I am aware, the term “deflation” refers to an economic situation in which the general per unit value of the medium of exchange is increasing beyond previous levels relative to almost everything else [other goods, services] in production. [ie there is a steady increase in per unit purchasing power- less units now buy more goods/services than before].
[If you are using an entirely different definition then what follows below is probably irrellevant.]
Final Per Unit Value = Final Outcome of Supply and Demand factors
As LVM has shown, as with anything and everything else produced, at any point in time, the final purchasing power [ie price, or value] of a single unit of money is always the outcome of just two factors: [1] present supply of that unit, and [2] present demand for that unit.
Therefor, in a deflationary environment , the present demand for the supply of the unit of currency exceeds the present supply,[ for whatever reasons] but likely including a general hoarding preference by the majority of the population.
To put it another way, the desire by the majority of individuals to acquire and hold currency units [instead of spending them] is increased [ie there is an increased demand] to the point where that the total , present, collective demand outstrips the present supply of currency units.
Example: the money supply is being increased above previous production levels , but the demand for that increased supply [for whatever reasons] is still greater than that increased supply - therefor, increased supply, plus even more demand that outstrips that increased supply causes the economic effect of an increase in per unit purchasing power ,a deflationary, or at the very least disinflationary,* scenario.
Cause and Effect
Therefor, the hoarding of money [ie an increase in the general desire to hold cash instead of spending it], is a cause of deflation [ie an increase in per unit purchasing power] - a factor involved in producing the economic effect usually called “deflation”, not really a result of it.**
Why a Deflation?
The question then becomes: “what would cause a majority of people to change their behaviour and choose to hold onto more cash [causing deflation- or an increase in per unit purchasing power], instead of spending as freely as they have in the past?”
Anyhoo, thats my twisted logic
Regards, onebornfree.
.*“Disinflation”= a decrease in the rate of inflation
**Of course, once this hoarding behaviour is set in motion, that hoarding of money does become a self-fulfilling prophecy to an extent- up to an [undeterminable] point, money hoarding will encourage more hoarding.
P.S. Regardless of how you and I define deflation, and regardless of what measures you envision that can/will prevent/discourage the hoarding of money and promote its supposedly beneficial free circulation instead, and regardless of who it is you envision as being in charge of carrying out those envisioned measures , those envisioned measures will ultimately fail, as the market finally corrects and adjusts to them, perhaps as viciously, or perhaps even more viciously, than it is doing right now in its response to certain, er, “measures” already taken.