Even under a regime in which government controlled central banks pursue deflation targeting there would be the risk of creating unsustainable debt levels for private households, firms and governments. A rising indebtedness (relative to income), in turn, would sooner or later tip the balance of societal preference in favor of debasing the value of money.
From the Austrian point of view, a government controlled money supply system, coupled with the price level stabilization idea, is inherently crisis prone, irrespective of inflation targeting or deflation targeting. That is why Austrians argue for an unconditional return to free-market money. They see it as a solution to the dangers emerging from today’s monetary regime. FULL ARTICLE