Inflation is good for debtors, because as the value of the currency shrinks, so does the value of your debt, that becomes easier to repay in real term - with in

Inflation is good for debtors, because as the value of the currency shrinks, so does the value of your debt, that becomes easier to repay in real term - with inflation, salaries grow nominally, tax revenue grow nominally etc. With deflation, the opposite happens.