Please read this comment Nate. I’m not disputing any of the numerous current ways that you say inflation and deflation occur. However, you’re missing the most important fact regarding money which is its paradigm/applied concept. Currently the paradigm for the creation and distribution of ALL new money is Debt ONLY. The word ONLY designates it as a MONOPOLY paradigm. All monopolies are dominating and obstructive of change. As all new paradigms historically have always been in complete conceptual opposition to the new paradigm that would make Monetary Gifting the new paradigm which strategically integrated into the Debt ONLY system would break up that monopoly and resolve the major economic problems the present anomalous paradigm creates and enforces. The way to implement the new paradigm is the same way that all new money is currently created, that is with the double entry bookkeeping operations of equal debits and credits that sum to zero. So if you implemented a policy of a 50% Discount/Rebate at retail sale where retailers agreed to reduce their prices by 50% and then the central bank created the entirety of the merchant’s discounts back to them you created BENEFICIAL deflation and the merchant gets their full price with the rebate aspect of the policy so both merchant and consumer benefit and chronic erosive inflation is transformed into beneficial deflation because the consumer gets $100 worth of groceries for $50 and the demand for every one of the merchants goods and services is potentially doubled. There are many other benefits in the policies of the new monetary paradigm including the funding of incredible amounts of guaranteed investment in eco-energy R & D bonds which could greatly increase the likelihood of the survival of the planet and every living species on it.