Accordingly, economic growth during the first half of 2007, as a whole, was in line with potential growth. Data on activity in the third quarter – from various confidence surveys and indicator-based estimates – remain favourable overall and support the assessment that real GDP is growing at sustained rates.
And, of course, a steady rate of deflation would only emerge if the whole private sector discovery process is itself stable, which any reasonable person might be permitted to doubt. It would therefore appear that the outcome earnestly desired by Hayek, a money of stable value, would not be achieved in practice by his own proposal of competing currencies.