The solution was obviously to forgo protectionism and increase aggregate demand instead.

In fact, increased spending, which the Keynesians saw simply as boosting aggregate demand, produced distortions.

The right target for generating growth is domestic aggregate demand based on the right mix of consumption and high return investment.

An important source of aggregate demand has evaporated.

Managing aggregate demand is governments job.

Both contribute to aggregate domestic demand, and the structural shifts on the supply side will be driven by the right mix of aggregate demand, with the low return component on the investment side removed.

In both cases, the underlying problem is insufficient aggregate demand.

First, the only source of recessions, stagnation, and other aggregate demand failures was inadequate consumer demand.

In terms of energy use, peak demand describes a period of simultaneous, strong consumer demand or a period of highest demand in a billing period.

Both views accept that the central source of weak aggregate demand is the disappearance of demand from former borrowers.

The largest component of US aggregate demand the consumer is on ice.

Although high oil prices look like a tax on business activity that depresses aggregate demand, they also raise inflation, both directly and indirectly.

For both, reducing the imbalance between aggregate supply and aggregate demand required, first and foremost, preserving the banking system and preserving the banking system required boosting aggregate demand to bring it closer to aggregate supply.

On one side, John Maynard Keynes s cohort argues that government intervention can help any economy grow its way out of crisis by spurring aggregate demand and, in turn, raising the employment rate.

Rather, the risk stems from governments refusal, when push comes to shove, to match aggregate demand to aggregate supply in order to prevent mass unemployment.

The economy of Lebanon is a developing economy, with a private sector that contributes to 75 of aggregate demand and a large banking sector that supports this demand.

Unemployment, and fear that it will spread, drives down wages, incomes, and consumption and thus total demand.

The decline in housing construction has added to the current shortfall in aggregate demand.

Without bubble supported consumption, there would have been a massive shortfall in aggregate demand.

Effectiveness increases demand, but the latter is not followed by a concomitant increase in resources to maintain that effectiveness.

It also means getting the balance between domestic and external demand right, and appreciating the sensitivity of medium and long term growth to the composition (and size) of domestic aggregate demand.

The tradable sector is expanding and is not dependent on leverage to generate aggregate demand.

The first key factor is deleveraging and the resulting shortfall in aggregate demand.

What we have witnessed is not a shift in demand into sectors lacking an adequate number of qualified and productive workers, but rather a collapse in the level of aggregate demand.

After all, restoring stability and growth is only partly about reviving short term aggregate demand.

The problem, advocates of this view claim, is a shortage of productive supply rather than a shortage of aggregate demand.

This did not work very well, because investment was constrained by deficient domestic aggregate demand relative to capacity.

Viewed from a matching perspective, there is no failure of aggregate demand whatever that means.

But, when countries pursue austerity simultaneously with their main trading partners, overall demand plummets, causing all of their economies to contract and, in turn, increasing their debt GDP ratios.

German exports would also benefit from a weaker euro, boosting overall economic demand in Germany.

As global oil demand increases, there is not enough capacity to meet it a cycle that will continue until demand collapses.

What it needs is a push more aggregate demand.

Accumulating excessive debt usually entails moving some part of domestic aggregate demand forward in time, so the exit from that debt must include more savings and diminished demand.

One of the first concepts to which an economics student is exposed in a basic macro course is pent up consumer demand.

In a global economy with deficient aggregate demand, current account surpluses are a problem.

Deficit spending in a recession, he said, help s maintain the aggregate demand for goods and services.

With aggregate demand depressed in Europe and the US, governments turn naturally to export markets to relieve unemployment at home.

Falling consumer demand need not cause a recession, since other parts of aggregate demand may rise to counteract this effect.

However, to the extent that public investment grows, aggregate demand increases correspondingly, generating some growth and creating a cushion against recession.

But their resilience has always been a function of their ability to generate enough incremental aggregate demand to support their growth, without having to make up for a large loss of demand in developed countries.

That approach might have worked had the US economy been afflicted by a cyclical disease a temporary shortfall of aggregate demand.

Mill saw that excess demand for some particular set of assets in financial markets was mirrored by excess supply of goods and services in product markets, which in turn generated excess supply of workers in labor markets.

If you relieved the excess demand for financial assets, you also cured the excess supply of goods and services (the shortfall of aggregate demand) and the excess supply of labor (mass unemployment).

This is the strongest decline in net foreign demand facing a single country, or, equivalently, the strongest increase in a country s net demand for foreign goods.

But this economic logic does not apply in the case of increases in oil prices. Although high oil prices look like a tax on business activity that depresses aggregate demand, they also raise inflation, both directly and indirectly.