Scripture forbids inflationary monetary policy but not a deflationary one. The state cannot expand by deflating as it can through inflation.

Inflation shifts purchasing power to the state, which spends the new money without first taking from citizens the old money whose value it dilutes. Without inflation, human sovereignty in government is harder to assert.

The Bible likewise spurns international alliances which enhance rulers' power by monetary inflation (Deut. 17:14,17; I Ki. 10:22; 22:48-49; II Chron. 20:35-37), by maintaining a standing army in peacetime (Deut. 17:14, 16; I Sam. 8:7-12; I Ki. 9:19, 22; 10:26, 28-29), or by defending or extending foreign regimes (I Ki.22:48-49;
II Chron. 16:1-4, 7-9; 18:1-3; 19:1-2; 20:35-37); but the Bible accepts international alliances which shun these things (I Ki. 5:1-12).

An economy under Biblical principles will be mildly deflationary, with rising production, a relatively stable money supply, limited permissible indebtedness. (Ex. 21:2; Lev. 26:3-5, 10; Deut. 15:12; 17:17b; 28:4-5, 8,11)

Virtue-driven deflator: Since God's blessing cuts risk, such an economy will also have very low interest rates on domestic business loans, easing entrepreneurship.

This non-inflationary, supply-side, low-tax economy with legal equality and property rights will be an inter­national creditor (Deut. 15:6; 28:12-13), generating enough capital to fund internal growth without foreign investment, cowing other nations (Deut. 28:10) by economic control, achieving peace and security without would-be sovereign rulers' costly military establishments (Deut. 17:14, 16; I Sam. 8:11-12).

Objection: A 100% specie-backed money supply would provide too little money for the economy to function.

Response: First, this quantity-of-money fallacy mistakes additional monetary units for more wealth and purchasing power. In fact, any quantity of money suffices if it is relatively stable. Second, this objection wrongly implies that economic growth requires monetary inflation. But God's Word forever sets the unit of currency at one weight of precious metal.

Objection: Even a 100% specie-backed money supply can inflate, as when a new gold or silver mine opens.

Response: These rare events are far less harmful than the inexorable inflation by governments which expand their power by means of it, and which through inflation can devalue the debts they incurred to expand.

Objections to a 100% specie-backed money supply owe not to its infeasibility, but to deep animus against divine economic sovereignty.

Moral and monetary debasement are related. Debt repudiation, an effect of inflation, is wicked. (Ps. 37:21a) Debt is slavery. (Prov. 22:7) Indebtedness to foreign creditors signals moral collapse and defines national bondage. (Deut. 28:15, 43-44)

A 100% specie-backed money supply accepts divine sovereignty over the quantity of money, expressed through market supply and demand. Unlike fiat money and/or bank debt organized into currency, monetary metals are scarce commodities in fixed supply in the near term and expensive to increase in the long run.

Deductively and inductively, the deity of Christ, the Word of God, entails the gold standard.