On the other hand, what's wrong with mild deflation?

George Selgin argues for a productivity norm where prices would fall in line with productivity. (One implication would be that there would be no need to worry about quality adjustments when determining monetary policy). This was favoured by Hayek and at one stage Keynes.

He also has some well-developed arguments for free banking (money and credit provided by private banks without the involvement of a central bank or other government institutions).