Aggregate Demand Quotes & Sayings

Broadly speaking, Keynesianism means that the government has a specific responsibility for the behavior of the economy, that it doesn't work on its own autonomous course, but the government, when there's a recession, compensates by employment, by expansion of purchasing power, and in boom times corrects by being a restraining force. But it controls the great flow of demand into the economy, what since Keynesian times has been the flow of aggregate demand. That was the basic idea of Keynes so far as one can put it in a couple of sentences. — John Kenneth Galbraith

It should be possible to emphasize to students that the level of employment is a macroeconomic issue, depending in the short run on aggregate demand and depending in the long run on the natural rate of unemployment, with microeconomic policies like tariffs having little net effect. Trade policy should be debated in terms of its impact on efficiency, not in terms of phoney numbers about jobs created or lost. — Paul Krugman

The risk exists that, with aggregate demand exhibiting considerable momentum, output could overshoot its sustainable path, leading ultimately in the absence of countervailing monetary policy action to further upward pressure on inflation. — Ben Bernanke

In New Classical theory, periods of declining employment - business cycle downturns - may be caused by an unexpected decline in aggregate demand, which leaves workers mistakenly holding out for nominal wages that exceed the new market-clearing level. — George Akerlof

If the world is an aggregate of relatively independent regions, then any assumption of universal laws is false and a demand for universal norms tyrannical : only brute force (or seductive deception) can then bend the different moralities so that they fit the prescriptions of a single ethical system. And indeed, the idea of universal laws of nature and society arose in connection with a life-and-death battle: the battle that gave Zeus the power over the Titans and all other gods and thus turned his laws into the laws of the universe. — Paul Feyerabend

In a slow-growing world that is short on aggregate demand, Germany's trade surplus is a problem. — Ben Bernanke

The sources of deflation are not a mystery. Deflation is in almost all cases a side effect of a collapse of aggregate demand.. a drop in spending so severe that producers must cut prices on an ongoing basis in order to find buyers. — Ben Bernanke

Disciples of Keynes, who focus on aggregate demand, view any increase in household wealth as raising employment because they say it adds to consumer demand. — Edmund Phelps

Even if the dollar does decline during the coming months, the delays in the response of exports and imports to the more competitive dollar will mean that the increase in aggregate demand from this source may not happen for a year or more. — Martin Feldstein