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In other words, low interest rates should stimulate lending, which in turn should stimulate consumption and hiring, creating a virtuous cycle.
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For example, a drop in Treasury yields would lower borrowing costs for consumers and businesses, helping to stimulate consumption, business investment and housing.
FORBES: The Fed Pushes On A String As It Ponders How To Create Inflation
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He urged China to stimulate consumption by introducing better pensions and health care and upgrading its financial services to allow capital to flow from people who have it to people who need it.
WSJ: Geithner's China Pitch
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SHANGHAI China has been supporting property purchases by certain buyers to meet genuine rather than speculative demand in the past few months, as Beijing seeks ways to stimulate consumption and ease credit to stave off a hard landing for the world's second-largest economy.
WSJ: China Steps Up Support for Parts of Housing Market
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Likewise, the notorious clash-for-clunkers program was nothing if not a scheme to stimulate auto consumption.
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Thus government should stimulate demand increasing consumption.
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Broken windows would stimulate glaziers, but the shift from consumption to building repairs would necessarily depress others.
FORBES: Magazine Article
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Mr Wood argues that China is doing more to boost domestic consumption (for example, through incentives to stimulate purchases of cars and consumer durables, and increased health-care spending) than America is doing to boost its saving.
ECONOMIST: China's export prospects
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Does Boris tells everyone how great the beef is to stimulate demand, while Leo takes a small portion and urges sustainable consumption?
BBC: The joylessness of shopping
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High prices in oil, for example, drive down consumption, make the drilling of more difficult wells worthwhile and stimulate investment in alternative energy.
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