None of those quotes support your argument and none of them invalidate my position (I’m not sure that you understand what I’m saying). Also, since we’re appealing to authority, here’s Hayek:
It’s not the case that inflation “increases prices and that’s bad,” nor is it the case that “deflation lowers price and that’s good.” One could just as easily (and mistakenly) proclaim that “inflation is good because it increases wages and asset prices, which makes everyone wealthier.” These are the naive types of arguments that you consistently make and they completely ignore major theoretical breakthroughs made by the Austrian school, breakthroughs which distinguish it from the mainstream and other schools of thought. Furthermore, I believe that this is causing a great deal of confusion for you and it’s why you continuously downplay the potential negative effects of deflation.
The mainstream focuses on a few and relatively unessential effects of inflation, such as inflationary expectations, menu costs, shoe leather costs, and arbitrary redistribution of wealth (from creditors to debtors), while the Austrians tend to focus on the effects that inflation has on the relative structure of prices (Austrians don’t deny that the other effects exist).
The fact is that prices do not instantaneously and simultaneously adjust, and when they do adjust, they do so in ways which actually perpetuates disequilibrium and yields a misallocation of resources towards ultimately untenable productions (what are known as malinvestments). Simply put, an expansion in the supply of money beyond the demand for money, say by 10%, does not yield 10% general price inflation (I’m assuming that total output is constant): some prices may rise by 10%, some may rise by greater than 10%, some prices may not rise at all, and other prices may actually fall (there are time lags between the various price adjustments). It is this uneven adjustment that causes the major problems, namely the trade cycle.
Similarly, deflation, caused by a reduction in the supply of money below the demand for money, also leads to uneven adjustments. Some prices fall further than others, sometimes wages don’t fall fast enough (causing unemployment) and some prices may actually rise. This is due to the fact that money enters (or leaves) the economy at certain points and then permeates amongst the rest of society, altering preferences and expectations.
Either way, the fact that prices (tend to) adjust upwards (as a result of inflation) is the most insignificant problem. I hope you realize this now.
I highly suggest Hayek’s Monetary Theory and The Trade Cycle.