Inflationists would argue that Central Banks can instantly solve that problem by adding zeros to a computer under a fiat money system.  Since all it takes is keyboard strokes vs. unleashing painful losses for the fat cats on Wall Street all the way down to the average Joe I think overall we will experience a great inflation, but periodically there will be strong bouts of deflation.  The government can also hand out money through tax credits and other gimmicks such as cash for clunkers so it isn't just up to banks to re-inflate the money supply.  Overall I think we will cycle back and forth between inflation and deflation until a large number of people lose faith in fiat monetary systems and then hopefully we will get smart and add the store of value property back to whatever we use as money next.