Then, excess demand resulted in higher inflation, huge current-account deficits and rampant asset-price inflation.
Yet excess demand persists, and jockeying for acceptance is the subject of much New York lore.
The irrefutable proof of excess demand is that universities pay legions of employees to turn down perfectly good business.
If the economy "overheated, " i.e. inflation reared up, these once-worthies cried for higher taxes to soak up excess demand.
If the economy "overheated, " that is inflation reared up, these once-worthies cried for higher taxes to soak up excess demand.
The first was excess demand for its exports created by the high tide of credit-financed spending and illusory wealth in rich countries.
If everybody is laying cables to soak up excess demand and to bring down prices, can the cable owners still make money?
Andy attributed the increases in food prices to shortages caused by recent bad weather in China, not excess demand due to an overheating economy.
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Where, he asks, would the excess demand for global assets go?
HSBC, most such episodes occur during periods of unusually low inflation, which give monetary policymakers an excuse to disregard potentially worrying indicators of excess demand.
Higher oil prices will be a benefit, but excess demand could keep natural gas-focused names in the doghouse, while some analysts like coal to continue its unexpected star turn.
Over the past several decades, hordes of for-profit institutions have sprung up to capture the excess demand for higher education in the market, making some insiders very wealthy in the process.
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Also, if you eliminate the excess credit that fueled excess demand in rich countries, by definition you do away with the demand itself and with a substantial portion of China's export-led growth.
But a jump in inflation caused by higher commodity prices and a rise in VAT in an economy with spare capacity is quite different from one caused by excess demand and a pay-price spiral.
The doves counter that it is excess demand, not rapid growth, that causes inflation to accelerate, and argue that America's economy, though certainly booming, is in no danger of outstripping its capacity.
One more reason not to lose sleep over the surge in oil prices is that, unlike the rises in the 1970s, it has not occurred against the backdrop of general commodity-price inflation and global excess demand.
As stockmarkets rally on a belief that the central bank has acted pre-emptively and quashed any prospect of inflation, looser financial conditions could fuel the very excess demand that the Fed is trying to reign in.
Processor demand is likely to slow over the course of the year to offset shipments well in excess of demand in the first quarter.
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Moreover, these increases have been due to weather, not an excess of demand caused by an overheated economy.
Meanwhile, Rousseff and Finance Minister Guido Mantega are sticking to their guns when it comes to their inflation shoot-out, arguing that excess global liquidity is a key, if not main culprit, rather than excess local demand.
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This unfortunate policy cycle delays the rebalancing of world accounts that is needed to restore economic equilibrium, and it can freeze the kind of private investment that is needed to get the developed economies going and to boost supply in the emerging markets where there is currently an excess of demand.
Like other solar companies, Suntech is struggling to cope with falling prices, soft demand and excess supply.
But alongside it are signs of a more malign deflation, caused by excess capacity and weak demand.
Among other things, he points to slowing demand and excess inventories in China and Europe and continued tablet cannibalization.
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Conversely, price controls meant to keep the cost of goods higher than markets would allow create an excess of supply over demand.
Deflation is dangerous, on the other hand, when it reflects a sharp slump in demand, excess capacity and a shrinking money supply as in the early 1930s.
Traders worry that Spain, Italy and other weak European countries might follow suit, flooding the market with excess supply just as demand for the metal is weakening.
The question: Why have the prices of these hard assets risen so rapidly despite high unemployment, weak demand, and excess capacity in the economy?
That, however, is well in excess of even optimistically projected demand.
Every change on the factory floor that allows workers to adapt to sudden shifts in demand reduces the excess capacity of people and plant space Dell must maintain to get products out on time.
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