methods of controlling aggregate demand

Discussion in 'Economics' started by morganist, Jan 20, 2011.

  1. morganist

    morganist Guest

    Assuming you are correct even if there is only monetary and fiscal policy the mechanisms of control are what I am suggesting. If the governments looked at this issue a lot of the difficulties in economics would disappear if implemented correctly.
     
    #11     Jan 21, 2011
  2. Don't forget immigration and demographics. Basic econ, number of buyers shifts the demand curve.
     
    #12     Jan 21, 2011
  3. morganist

    morganist Guest

    Thank you. I would say these are more factors that affect aggregate demand instead of controls. But still useful.
     
    #13     Jan 21, 2011
  4. sjfan

    sjfan

    I don't mean to be dense - but still not sure which "issue" you are alluding to that no one is paying attention to?

     
    #14     Jan 21, 2011
  5. morganist

    morganist Guest

    The consequences of an interest rate increase to reduce inflation when there is a economic downturn.
     
    #15     Jan 21, 2011
  6. sjfan

    sjfan

    Where do you see that happening? Short term rates remain at historical low. Isn't interest rate increase to reduce inflation usually a task for an overheating economy?

     
    #16     Jan 21, 2011
  7. morganist

    morganist Guest

    I think this is why we are getting confuse. I am talking about the UK not the US. I am English, we have one and a half over target inflation.
     
    #17     Jan 21, 2011
  8. English were never good at managing their economy.
    Actually they made a mess out of it when they began to control it.
     
    #18     Jan 21, 2011
  9. sjfan

    sjfan

    Oh be quiet. I consider myself rather libertarian (without taking to the radical and unattainable extremes) but your statement is just pure ignorance (of history and economics). England, in its entire history from petty kingdoms to world empire, has never had a second where the government didn't control its economy to a significant extent.

     
    #19     Jan 21, 2011
  10. morganist

    morganist Guest

    They have mismanaged it at times.
     
    #20     Jan 21, 2011