Would secular deflation/inflation still be a problem if we switched to the gold standard?
Answer:
Inflation and deflation are literally the process of the Fed putting or taking money out of circulation. Because of the fact that we now use fiat money, the Fed can do that basically at will and claim that we 'need' a certain amount of inflation. If we were on a gold or silver or really any commodity based system of money, that would not be possible because they could not produce more money that we have commodity to back it (unless you consider fractional reserve banking). Gold and sometimes silver are selected for reason I won't cover here, but in short, the answer is no.
Agreed, inflation and deflation wouldn't arise with gold standard. Also budget and trade deficits would be less worrisome as they would limit themselves.
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