Not that it would happen often, but could you imagine the outrage of people losing salary during periods of deflation? No way this works long-term imo, but maybe I'm missing some ideas to balance it.
We haven't had real deflation since bretton woods, when we gave up the gold standard.
Wouldn't that be the other way around?
If I take out a $30K loan to buy a new car, and I'm paying $500/month, then if the economy happens to go through an extreme amount of deflation a year later and now brand new cars are only $10K, then as the payer, I'm still paying $500/month and $30K total, except that amount is worth a lot more.
Whereas if massive inflation happens, the payer gets a huge benefit, assuming their salary keeps up with the inflation.