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Fisher's deflationary debt spiral specifically parses 'deflation' from the spiral noted here. Growth deflation is not a risk... it's a byproduct of growth. https://twitter.com/mtmalinen/status/1358720664585318400
Fisher, who wrote the theory referred to here, breaks apart growth deflation and credit deflationary (spirals), noting the second as the problematic issue in deflation.
A risk factor today is a credit deflationary spiral, which is a *product of FRB run amok*. It is true this is a material economic risk today, but the cause of that risk is corrupt banking & price censorship. The only way out of that is euthanize the currency.
You may delay or shift the fallout of a credit deflationary debt spiral into the currency or the future via state-sanctioned bailouts, but you cannot remove the risk. The bailouts shift costs to the populace, creating social instability not in the models of economists.
Making the currency absorb the defaults means robbing salaried & hourly workers, pensioners, savers in order to recapitalization the *failed entrepreneurs whose uneconomic decisions caused the crisis*. This incites revolution...
The complexity in play here is beyond the willingness of fiat economists to observe and properly understand at a theoretical level. You can't adequately model reality, only a sliver of it which often leads to externality-rich implementations.
