So our money is still being debased, albeit at a slower pace than in recent years. Given the tremendous technological advances and the subsequent increases in productivity, we should really see falling prices if the dollar were truly maintaining its usefulness as a store of value. Not a 1930's style severe deflation that was caused by a variety of bone-headed economic policies that squashed both demand and supply. Just a steady price decline reflecting the general quality improvement in products and services, where even products whose quality stays the same become cheaper to produce. Currently the markets are content with Alan Greenspan, but intelligent arguments can be made that current policy is either too tight or too easy.
Economies are just too dynamic and are composed of too many players.
No matter how smart members of the Fed may be, it makes no more sense to have them set monetary policy than it did for elite economists in centrally planned economies to set the price of food, cars or any other product. To get rid of this monopoly, all the government has to do is privatize the Fed. Sell the whole thing to the highest bidder. The government would also have to deregulate enough to allow competitors to arise in the currency issuance game. Consumers would choose between U.S. dollars, marks, Citi dollars, J.P. Morgan dollars, etc.