Same, though it's not actually inflationary either, but equilibritory [1]. Unlike managed currencies that target a constant rate of inflation (2%-3% in the cas

Same, though it's not actually inflationary either, but equilibritory [1]. Unlike managed currencies that target a constant rate of inflation (2%-3% in the case of USD), Ethereum creates currency at a constant rate forever. But as the size of the monetary base grows relative to the constant rate of issuance, the inflation rate tends to 0%. Eventually, when the monetary base hits a certain size, the rate of ethers lost to bitrot, hardware failures, carelessness, deaths, etc. comes to equal the rate of issuance, the monetary base stops increasing, and inflation rate hits 0%. Both a simple (and in hindsight probably obvious) solution to the problem of lost currency over time, and a nice compromise between inflationary and deflationary currency models. [1]:http://dictionary.reference.com/browse/equilibratory http://dictionary.reference.com/browse/equilibratory