And that’s because, generally – thank’s to human progress and iterating on past work and technology getting better – we get more efficient at producing goods and services over time, gradually.

So, if you had a fixed money supply, you’d expect prices to go down and not stay flat.

Despite the fact that technology makes most things cheaper over time – outside of wars and other big setbacks of productivity – Central Banks have *positive* inflation targets. They want to have prices that go structurally up despite the fact that, technically, prices should go down. Central Banks manage [positive inflation targets] by encouraging more money creation either from bank lending or fiscal deficits that they can monetize.

– Lyn Alden