methods of controlling aggregate demand

[morganist]

Quote from sjfan:

Um.... if you are talking about controlling private pension through public sector actions, then it's fiscal policy. Otherwise, it's just private pension allocation activities. In the second case, most private pensions are 401(k) type, which means there's no much control you can assert other than through legislative means.

"due to the high level of public and private debt" -> still not sure why high level of public and private debt constrain the US's monetary and fiscal policy. Monetary policy is arguably hampered by a contraction fiscal policy (Dodd-Frank, for example); Fiscal expansionary policies aren't going to have a problem funding itself by selling govt bonds - the last few auctions, like the ones before it, went about as well as can be expected.

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.

 

[Covertibility]

Don't forget immigration and demographics. Basic econ, number of buyers shifts the demand curve.

 

[morganist]

Quote from Covertibility:

Don't forget immigration and demographics. Basic econ, number of buyers shifts the demand curve.

Thank you. I would say these are more factors that affect aggregate demand instead of controls. But still useful.

 

[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?

Quote from morganist:

If the governments looked at this issue a lot of the difficulties in economics would disappear if implemented correctly.

 

[morganist]

Quote from 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?

The consequences of an interest rate increase to reduce inflation when there is a economic downturn.

 

[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?

Quote from morganist:

The consequences of an interest rate increase to reduce inflation when there is a economic downturn.

 

[morganist]

Quote from 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?

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.

 

[jueco2005]

Quote from morganist:

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.

English were never good at managing their economy.
Actually they made a mess out of it when they began to control it.

 

[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.

Quote from jueco2005:

English were never good at managing their economy.
Actually they made a mess out of it when they began to control it.

 

[morganist]

Quote from 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.

They have mismanaged it at times.