This puzzle generated a flurry of research and several Nobel prizes, and one of the things that came out is that
increasing aggregate demand (expansionary fiscal policy and or expansionary monetary policy) will not offset a negative productivity shock.
It's not impossible to arrive at the conclusion that the federal government should use fiscal policy to
increase aggregate demand: you can mount a strong case to support the stimulus package in the 2009 budget.
I do believe Krugman is ignorant about time in the structure of production, thus he esposes an endless injection of stimulus to
increase aggregate demand.
Not exact matches
JoyRun's business innovation is
aggregating disparate
demand into one order, thereby
increasing the dollar value of each runner's trip, and activating «me - too» instincts among consumers.
If, in fact, an
increase in the minimum wage were to result in a net
increase in nominal
aggregate spending, then we could eliminate any shortfall in
aggregate demand relative to
aggregate supply by merely boosting the minimum wage to whatever level necessary to eliminate the gap.
Although I am all in favor of stimulating
aggregate demand if it is demonstrably below potential
aggregate supply, it is not entirely clear to me how
increasing government transfer payments will accomplish this.
As the previous points illustrate, there is a compelling case (wholly apart from any ideas about
aggregate demand) for
increased infrastructure investment.
Fifth, while the case for expanded infrastructure investment does not depend on Keynesian stimulus or
aggregate demand considerations, secular stagnation risks reinforce the argument for
increased public investment.
This can boost
aggregate demand further, through
increased export sales or, more simply, because existing export sales produce more revenue measured in domestic currency.
Even if part of this decline was driven by a heightened liquidity premium the implication is the same: it indicates an
increased demand for highly liquid and safe assets which, in turn, implies less
aggregate nominal spending.
The evidence for this
demand also lies in real estate transactional volume in Dubai, which
increased by 53 per cent in 2013 for an
aggregate amount of Dh236 billion per Dubai Land Department's statistics.
Niskanen sees the primary duty of the Fed as maintaining «a steady
increase in
aggregate demand consistent with a low target rate of inflation.»
[1] Also, any net
demand for TLTRO II that is not rolled over from TLTRO I will
increase the level of excess liquidity and thus the
aggregate cost of negative rates for depositors, while potentially reducing the amount of other refinancing operations, including ECB's MRO currently standing at EUR63bn.
This was due to «the effects of spending cuts themselves — including job losses,
increased welfare spending and reduction of
aggregate demand.»
An earlier EWEA Tradewind study found that, for the 2020 medium scenario (200 GW, 12 % wind penetration),
aggregating wind energy production from multiple countries strongly
increased the capacity credit, the amount of capacity that can be relied on to meet peak
demand, almost doubled it to 14 %, which they say corresponds to approximately 27 GW of firm power in the system.
Identifying locations with potential for
increases in housing
demand within an urban area, requires an understanding of how
aggregate demand for specific types of property is distributed across competing locations.
1)
Increases in aggregate market demand, due to economic and population growth, will contribute to increases in demand at many locations within
Increases in
aggregate market
demand, due to economic and population growth, will contribute to
increases in demand at many locations within
increases in
demand at many locations within a market.
In thinking about drivers of housing
demand, we need to distinguish what factors cause
increases in
aggregate market
demand and what factors cause
increases in
demand for a specific location or locational
demand.