However, as the exchange rates of countries engaged in quantitative easing fall, they impose deflationary pressures on the countries not pursuing quantitative easing because a rising exchange rate lowers import prices, profit margins, and real wages in the non-quantitative easing countries.
Brussels: Fears of a deflationary spiral pushed the European Central Bank to cut its interest rate to a record low early this month, but falling prices are also affecting countries outside the eurozone.
The decline last year was smaller than a 0.3 percent drop in 2011, but it would be difficult for prices to turn higher from the current level of around zero percent for a while amid persistent deflationary expectations by the public, said Yuichi Kodama, chief economist at Meiji Yasuda Life Insurance Co.
If the forces in the world which are deflationary, that we've talked about in terms of debt busts, prevail and the Fed doesn't do the Quantitative Easing II promptly, we could actually see some reversion in this relationship and a reduction in nominal yield, certainly given the sell-off in Treasuries that we've seen recently and the backup in nominal yields.
This paper explicates the claim that numbers are abstract objects introduced for the purpose of counting by combining a deflationary account of abstraction as a device for picking out representatives for equivalence classes of concepts with a nonreductionist view of cardinality as a logical notion.