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aggregate demand English
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Prior to the crisis, many suspected that the mix of aggregate demand that was supporting high growth was unsustainable, though the problem perhaps seemed too hypothetical to compel collective action.
And, as we have seen in many countries' efforts to ameliorate the crisis, the non-cooperative protectionist response is much more likely to be adopted - despite wide recognition that it is highly destructive - when aggregate demand is in short supply.
Second, everyone must recognize their stake in restoring balanced advanced-country growth as much and as soon as possible in order to counter the ongoing shortfall in aggregate demand.
If monetary policy is not effective, the only lever the American government has to manage its economy is fiscal policy: changes in the government's tax and spending plans to change the government's direct contribution to aggregate demand.
The second is a set of understandings and commitments among the major advanced and developing countries to rebalance the global economy in order to restore aggregate demand and growth.
So what can be done to shore up global aggregate demand and growth prospects, while preserving the economic openness that has benefited major parts of the developing world so greatly in the past 30 years?