Long-run price stability could be a key feature of the gold standard, researchers with the Federal Reserve Bank of Philadelphia find. 

In their working paper, published in February, Jesús Fernández-Villaverde and Daniel Sanches explore how the gold standard would operate as a monetary framework in a hypothetical small open economy economy. 

They argue that the price level would consistently converge to its long-run equilibrium value. Inflation and deflation would be “merely temporary phenomena”