In this blog posting Scott Sumner raises a number of interesting issues about Selgin's argument. Sumner's preliminary response to the Selgin argument,
1. The productivity norm as a monetary policy regime? It’s OK with me if it is OK with you (meaning my fellow Americans.)Note that Selgin responds to a couple of Sumner's points in the comments. Well worth a read.
2. Mild deflation at the rate of productivity increase? Yes, but only if several stringent preconditions are met. And we haven’t yet met them.