L$ economy and inflation/deflation

I wasn't sure where exactly on the forum this should go, and it's more of a question than a suggestion. Hopefully a Linden out there notices this.
During the live Q&A session with Philip Linden, someone brought up a question regarding the L$ economy, specifically how Lindens were controlling it, bringing money in and taking it out, to control inflation. His response was that they are basically doing things to keep the value of L$ level, and inflation at 0. The question I have is, is the 0 inflation relative to goods we buy in SL, or relative to outside money markets, such as the US$ exchange on the GOM? And if it is "universally" 0, not dependent on the US$, does that mean that as the US$ inflates, it would require more US$ to buy the same amount of L$?
My guess is that since LL operates in US and probably uses their own real US$ to control the SL economy, the L$ that were deposited/invested into the game will inflate right along with US currency.

There have been countless posts talking about this exact subject. In an effort to organize all the thoughts on the subject I formed a group called the Land Barons that discusses the economic model of SL. Send me an IM in game.