If you have a bond which costs $100 and pays $101 in a year's time, and a 50% deflation rate, then the real return on the bond is 102%. The real return on cash

If you have a bond which costs $100 and pays $101 in a year's time, and a 50% deflation rate, then the real return on the bond is 102%. The real return on cash is 100%. Inflation or deflation with magnitudes exceeding 20-30% is generally a very bad thing, and is also not what the article is discussing.