Exact(13)
The Fed has responded appropriately by loosening monetary policy to stimulate aggregate demand.
His economic advisers, under the influence of the British economist John Maynard Keynes, advocated an intentional increase in the deficit to stimulate aggregate demand.
Instead of policies designed to fuel asset price bubbles and increase household debt, the Treasury and the Bank should co-operate to directly stimulate aggregate demand in the real economy.
Public trust funds based on the huge postal saving system and the central bank itself are now lending directly to private trade and industry.Even so, because the deflationary psychology gripping the economy points to continuing declines in wholesale prices and in land values, "real" rates of interest remain too high to stimulate aggregate demand.
According to the Keynesians, when people turn pessimistic, governments should stimulate "aggregate demand" by increasing public spending and printing more money.
To stimulate aggregate demand in the current environment, the Federal Reserve must focus its policies on reducing those spreads and improving the functioning of private credit markets more generally.
Similar(47)
For expositional purposes, and inspired by the current EU economic crisis, we identify the two policies as (1) an expansionary fiscal policy, that aims to stimulate aggregated demand through public spending; and (2) a policy of austerity, that aims to reduce budget deficits in order to foster the return of sustainable growth.
Third, the government must try to raise velocity by stimulating aggregate spending in the economy.
Thus the war plan has four essential components that hang together logically: stimulating aggregate demand, limiting foreclosures, rescuing (most of) the banks and rehabilitating the shadow banking system.
In any of these policy scenarios, new money will be directly introduced into the real economy, stimulating aggregate demand and boosting employment, investment and spending.
"A possible implication of this finding," the ECB concluded, "is that policies aimed at stimulating aggregate demand (including fiscal and monetary policies) should play an even more important role in the economic policy mix".
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