You have a different definition of deflation.
Such is not unusual -- the word "deflation" has several meanings. See for example Mish's explanation of "deflation", at Inflation: What the heck is it?. He begins:
Inflation has at least 8 distinctly different definitions that I can readily find, and probably a whole lot more that I have not yet found.
Commonly Used Definitions
- Decline in purchasing power of the currency held
- Rising prices in general (essentially the same as #1 although some might disagree)
- Rising consumer prices (CPI)
- Rising producer prices (PPI)
- Rising prices due to expansion of money supply
- Rising prices due to expansion of money supply and credit
- Expansion of money supply
- Expansion of money supply and credit
Four of those definitions refer to money supply. That brings up another issue. When one refers to "money supply" are they talking about M1, M2, MZM, Money AMS (Austrian Money Supply), or simply the amount of money they have in their bank account or wallet at the time of the conversation? Definitions 5 and 6 refer to "rising prices" yet fail to distinguish between consumer prices, producer prices, or simply prices in general. It seems we could easily add a lot more definitions.
Furthermore, some people make no distinction between money and credit but others do as noted by choices 5 thru 8. Still others insist than in the fiat world we are in, the web is so tangled between money and credit that this mess is not even worth bothering to figure out. Those folks simply hold gold and wait for "The Crash".
I’m a supply sider so that’s where I’m coming from. The fed should give the money that the market wants, not too much and not too little, otherwise you have a problem.