[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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Deflation is a decrease in M, not a decrease in P.

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If you are talking about deflating the money supply then it is, but under a gold standard the money supply would be relatively stable no?