Sentences with phrase «reduced aggregate demand»

Some believe the demographic bubble implies reduced aggregate demand and slower economic growth lies ahead.

But one empirical observation: in the mid 1990's the Canadian government tightened fiscal policy a lot (for reasons unrelated to reducing aggregate demand), but the Bank of Canada managed to offset that fiscal tightening and keep inflation on target.

International coordination plays no role in inflation targeting; there are no requirements on external imbalances; indeed, external imbalances and the real exchange rate are technically jointly determined by aggregate demand — for example a tough fiscal policy, reducing aggregate demand, implies ceteris paribus an external surplus.

Not exact matches

Critics contend that's bad for innovation and growth because sending money back to shareholders reduces investments in equipment, technology and research and development, and lowers corporate spending and aggregate demand for goods and services.

[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.