Normally in order to prevent or slow the rate of inflation, developers implement a system that will slowly remove gold from the game, such as taxes, taxies, repairs, crafting, and etc. But there has to be a healthy balance between currency creation and destruction. If too much gold is removed, then prices deflate and the economy experiences deflation, but if too much is created well like I said before the economy inflates. In most theme park MMOs the economy tends to inflate rather than deflate namely because gold is generated faster than is removed. Plus there are more activities that allow players to increase their gold holdings than those that decrease it.
Now if faced with the option of one or the two (inflate vs deflate) which would one prefer? Well it depends on which type of game you’re playing. If most of the items that a player wants or needs is available from an npc, then players would rather experience inflation as the price of the goods on Npcs are locked in and their inflated currency will allow them to purchase more goods. However, if a majority of the items come from other players, players would rather have their currency depreciates as now they’ll be able to buy more goods from each other as prices fall. In the real economic world, contrary to popular belief, a little deflation per year (about 1% or 2%) is actually better for the economy than a small increase of inflation per year.
During 1865-1910 prices of goods depreciated slowly causing the American living standards to rise. This is why mothers were able to stay home and take care of 4-6 children while only the father was needed to work. Prices depreciated as industries and companies became better and efficient at increasing the supply of their products, which in turn lowered costs and allowed prices to fall as well. As for inflation, as we have experience ever so slowly since the late 60’s, mom had to work alongside with dad and most couples could only afford 1 or 2 children. Today, it’s hard for even a single person to afford the rising cost of living much less a couple with a child.