We provide new characterizations of acyclic inductive spectra of Frech
et spaces which improve the classical theorem of Palamodov and Retakh.
It turns out that acyclicity, sequential retractivity (defined by Flo
ret) and further strong regularity conditions (introduced e.g. by Bier
stedt and Meise) are all equivalent. This solves a problem that was fo
lklore since around 1970. For inductive limits of Frechet-Montel space
s we obtain even stronger results, in particular, Grothendieck's probl
em whether regular (LF)-spaces are complete has a positive solution in
this case and we show that even the weakest regularity conditions alr
eady imply acyclicity. One of the main benefits from our results is an
improvement in the theory of projective spectra of (DFM)-spaces. We p
rove the missing implication in a theorem of Vogt and thus obtain eval
uable conditions for vanishing of the derived projective limit functor
which have direct applications to classical problems of analysis like
surjectivity of partial differential operators on various classes of
ultradifferentiable functions (as was explained e.g. by Braun, Meise a
nd Vogt).