However, if the recent decline in CPI had entailed danger of a deflationary spiral, corporate profits would have declined leading to a decrease in 3  BIS Review 63/2000  business fixed investment and employment, whereas, in fact, we have observed increases in both corporate profits and business fixed investment.
Moreover, such a danger would have adversely influenced the labor market through the supply and demand of goods and services, but, as a matter of fact, wages have stopped declining.