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I don't think deflation is the natural state of things. Even before fiat currency the money supply grew (e.g. gold mines) and we had inflation.

Productivity growth is normal-ish, but the amount you prices have been all over the place throughout history.

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Gold mines were not the major cause of inflation during the pre-fiat era. It was almost always deducting the precious metal content of the accepted currency, often to fund things like war.

Deflation should be the natural order of things; for example the unit real cost of food had gone down massively since the first half of the 20th century, which is a huge part of why people don't starve to death during recessions anymore.

>Deflation should be the natural order of things

Yes, and it is, for existing unchanging things. But as productivity grows we invent and buy new and improved things.

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