Yeah, you are right... it is a vast oversimplification and is not the only possible explanation. I guess my point is that time period is clearly an outlier in

Yeah, you are right... it is a vast oversimplification and is not the only possible explanation. I guess my point is that time period is clearly an outlier in a number of ways, which is why it is one of the only examples of high growth + deflation periods in history... it doesn't change the conclusion that you should aim for a small amount of inflation if you want economic growth. A single counter-example doesn't change the conclusion; just because we know there are people who have won huge jackpots in the lottery doesn't mean we stop suggesting saving money for retirement.