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