The Importance of Inflation

When money is based on something of intrinsic value, inflation does not happen. In fact, deflation a little bit may happen, which is a positive thing. If you want to sustain the purchasing power of any good money system, just make sure that it's backed by something that takes human effort to produce. The committee of wise men to figure it out is the free market at work - as long as people have the freedom to choose and change their mind.