Does the Free Market Naturally Lead to Price Deflation?

Bob uses U.S. economic history, centering on the greenback era, to work through some subtle but important distinctions in Austrian monetary theory. He also addresses whether free-market economies have a natural tendency toward price deflation under a commodity standard, why the stock-versus-flow distinction matters for understanding gold production and the price level, and how to distinguish "bad" policy-induced monetary deflation from the "good" price deflation that accompanies genuine productivity growth.

Related:

• Patrick Newman, "The Depression of 1873-1879: An Austrian Perspective": Mises.org/HAP558a
• Clarence Long, "The Course of Money Wages during 1860-1890": Mises.org/HAP558b
• Bob's Understanding Money Mechanics: Mises.org/HAP558c
• Bob's Article, "Hayek’s Plan for Private Money": Mises.org/HAP558d
• The Charts Shown in this Episode: Mises.org/HAP558e