Sorry, to clarify: I meant take out a loan as a borrower. Deflation will tend to increase my real interest rate over time, inflation the opposite. Obviously in

Sorry, to clarify: I meant take out a loan as a borrower. Deflation will tend to increase my real interest rate over time, inflation the opposite. Obviously in equilibrium theory, interest rates will cancel out these effects; but they do not always do so in practice. So borrowers will tend to favor moderately inflationary currencies like the dollar.