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Moreover, Japanese exporters are feeling the pinch of the strong yen, which has aggravated the overseas demand weakness by making Japanese goods more expensive for consumers abroad.
The report said: "In the event of protracted demand weakness and inflation undershooting, monetary and fiscal policies should be eased, taking into account the benefits and potential costs of such a move.
And then of course one confronts the possibility that a long period of demand weakness generates a loss of economic potential, so that even aside from the IMF analysis above a rise in redistribution in highly unequal economies begins to look like a decent idea from a long-run growth perspective.As the Free exchange notes, there are surely devils in the details.
The outlook for the U.S. current account deficit is mixed: The recession, a rise in private savings and a fall in investment, and a further fall in commodity prices will tend to shrink it, but a stronger dollar, global demand weakness and a larger U.S. fiscal deficit will tend to worsen it.
Still, demand weakness in China's Western export markets may cause economic growth to slacken in the third quarter from the second, they say.
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8.18am BST The 0.6% rise in German factory orders in February suggests growth in Europe's largest economy is gathering pace, with domestic demand cushioning weakness overseas.
We might anticipate that the central bank would struggle to boost demand given weakness in external demand, and we might expect that efforts to boost demand would overwhelmingly work by lifting growth in non-traded sectors.
These include a lack of domestic economic demand, the weakness of vital export markets including the euro zone, and the appreciation of the euro against the currency of Ireland's neighbor and key trading partner, Britain.
"A key drag on private demand is weakness in business capital expenditure in both the mining and non-mining sectors and this is likely to persist over the coming year," he said.
The time for double standards that allow Islamists to behave aggressively toward us while they demand our weakness and submission is over".
The time for double standards that allow Islamists to behave aggressively towards us while they demand our weakness and submission is over.
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