Gold inflation is a red herring

Fekete:

"The abundance of gold coins would call out an equal abundance of consumer goods. Circulating capital would expand, matching the increase in gold coin circulation to finance trade in marginal merchandise. Automatically and immediately. The maxim that 'more money chasing fewer goods brings higher prices' does not apply, provided that the color of the money is yellow and it has the right ring to it when plunked down on the counter. The collapsing discount rate will see to it that a sufficient abundance and variety of goods is always available. Prices need not rise on account of a greater abundance of gold coins in circulation. 'Gold inflation' is a red herring."

This quote must be read in the context of the Real Bills Doctrine.