Yes I understand that - especially when real interest rates are negative. Still in deflation you expect income to buy more, not less. This guy is trying to have it both ways. Inflation erodes spending, deflation has the opposite effect. Under deflation we can expect cheaper petrol prices, more affordable housing, cheaper inputs into manufacturing, lower interest rates. On the whole deflation is not a good thing but not every effect is negative and not everyone will be a loser.
