But factors like a stagnant housing market in Japan still restrained demand, Mr. Mendizabal said.
But they also predicted a tough year ahead, with two of the three biggest banks saying profits would fall as a limp domestic economy restrained demand for loans.
But high prices have had an effect, restraining demand and stimulating supply.
Ministers are planning to try to restrain demand overruns in other ways.
Research at York University suggests that this did help to restrain demand.
He admits that measures will be needed to restrain demand, and even concedes a role for higher prices and for rainwater harvesting.
The criticism is that budget policy is doing too little to restrain demand and inflation, which means that interest rates are higher than they need to be.
Although the necessary reallocation of resources to enhance security may restrain advances in productivity for a time, the long-term prospects for productivity growth and the economy remain favorable and should become evident once the unusual forces restraining demand abate.
This leads to inflation, and obliges the Fed (in America's case) to restrain demand by raising interest rates.An obvious place to look for signs that capacity is getting overstretched is the labour market.
That would help restrain demand, would raise money to pay for increasing the capacity of Britain's stunted road network where this is necessary, and would show, through drivers' willingness to pay, where that capacity can most efficiently be added.
