[ianlippert]

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He has all the necessary knowledge to get it right, lays it out for you, puts it in the correct order even... and then just misses it. If M, V and P are held constant then Q cannot grow, but deflation is a decrease in P, which is on the same side as Q so a decrease in P leads to an increase in Q!


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lol, wow!

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What you are both missing is that deflation (a decrease in P) is undesirable in and of itself for the many reasons discussed elsewhere. He is holding P (relatively) constant because that is the main objective of monetary policy.

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The funny thing was not that what he said wasnt true. The funny thing was that the math he tried to argue was completely illogical and yet it didnt phase him one bit. It really makes me question why he came to the conclusions that he did.