Thanks for the explanation Professor Herbener. So, would steady deflation be the natural state of an unhampered market economy?
And if so, it seems that this is not always the case if one looks at Price Inflation numbers from the 19th century [which I realize is not an unhampered market, but thought because it is a gold standard it should have that effect]. Here are the inflation numbers:
http://socialdemocracy21stcentury.blogspot.com/2012/10/the-gold-standard-did-not-prevent-price.html
