This is not true. Investment will always be made as long as the expected risk/return is better than the rate of inflation. That holds true even if the rate is negative (deflation).
Inflation @ 3% example.
O1: Invest at -1% after inflation
O2: Do nothing
**
Deflation @ 3% example
O1: Invest at -1% after deflation
O2: do nothing
**
Inflation drives bad investment.
