One linear, one cyclical.

That's a cyclical process.

In other cultures, time is cyclical.

That approach might have worked had the US economy been afflicted by a cyclical disease a temporary shortfall of aggregate demand. In that case, countercyclical policies both fiscal and monetary could eventually be expected to plug the demand hole and get the economy going again, just as Keynesians argue.

For now, the Chinese economy, having received its cyclical dose of stimulus, should be okay. By the end of the year, however, the costs of the structural adjustment needed to shift China s growth model away from investment demand could rise further.

Unfortunately, current policy is justified in terms of pro market effectively pro cyclical choices. But it is counter cyclical efforts, institutions, and instruments that are sorely needed instead.

The world s major developed economies are not suffering from cyclical deficiencies in aggregate demand that are amenable to a monetary cure. As the Bank for International Settlements correctly points out, they are still struggling in the aftermath of wrenching balance sheet recessions.

In addition, net foreign capital inflows are likely to dwindle for several quarters at least, affecting domestic monetary conditions while aggregate demand is weak. As such, the PBoC will need to maintain counter cyclical policies in order to avoid a deflationary spiral.

The global steel market has historically been marked by cyclical fluctuations.

This consolidation could help the industry to weather cyclical downturns more effectively.

The 30 mainly consists of four components capital spending by firms, net exports (exports less imports), residential construction, and government purchases. (Technically, the pace of inventory investment should be included, but this is a cyclical buffer between production and sales rather than a source of final demand.)

In November, annual inflation in the euro area fell to a cyclical low of 0.3 , largely owing to the sharp fall in oil prices since the end of the summer. But falling core inflation (which excludes volatile energy and food prices) also points to weak aggregate demand.

Yet the treatment prescribed for this malady has compounded the problem. Steeped in denial, the Federal Reserve is treating the disease as a cyclical problem deploying the full force of monetary accommodation to compensate for what it believes to be a temporary shortfall in aggregate demand.

Keynes demonstrated that the main cause of bouts of heavy and prolonged unemployment was not worker encroachment on profits, but the fluctuating prospects of private investment in an uncertain world. Nearly all unemployment in a cyclical downturn was the result of the failure of investment demand.

However, these flows tend to be more volatile than official flows and pro cyclical.

This assumption is patently false. Despite all the pain Greece has suffered a 30 drop in aggregate demand since the last cyclical peak and a rise in unemployment to more than 25 of the workforce the Greek economy is still nowhere near competitive enough to repay its debts.

Put differently, the bust that follows years of a debt fueled boom leaves behind an economy that supplies too much of the wrong kind of good relative to the changed demand. Unlike a normal cyclical recession, in which demand falls across the board and recovery requires merely rehiring laid off workers to resume their old jobs, economic recovery following a lending bust typically requires workers to move across industries and to new locations.

You see, this is what India is today. The ground reality is based on a cyclical world view.

Today, as over the past few weeks, Côte d'Ivoire is witnessing one of the cyclical periods of anxiety.

The cyclical challenges, in particular, are proving to be more vexing than anticipated. Though exports have declined considerably from their pre crisis peak of 35 of GDP, they continue to account for about 24 , leaving China exposed to the global growth cycle especially to markets in the developed world, where demand is exceptionally weak.

But economists debate the extent to which these conditions reflect a cyclical demand shortfall or more structural problems that a monetary stimulus cannot remedy. A recent study by a team of Fed economists concluded that nearly all of the current decline in the labor force participation rate reflects the aging of the population and other structural causes.

Energy demand

Demand reduction

Demand reduction

Demand reduction

Achieving this goal will be no small feat. China s economy is caught in the crossfire of structural and cyclical nbsp headwinds.

They noted the cyclical regularity of such occurrences and speculated that it represented a gap in communications between generations of engineers.

They noted the cyclical regularity of such occurrences and speculated that it represented a gap in communications between generations of engineers.

But the recession triggered sudden and sustained declines in the LFPR across all age groups in response to weak demand and poor job prospects. A recent CBO analysis attributes about one half of the decline in the LFPR from the end of 2007 to the end of 2013 to these cyclical factors, with the remainder explained by secular demographic trends.

The brute force of massive monetary and fiscal stimulus rings hollow as a cyclical remedy to this problem. Another approach is needed.

Demand or Supply?

Netanyahu s Useless Demand

Price reflects demand.

Drug demand reduction

Drug demand reduction

Demand savings accounts

Supply, demand, big opportunity.

It's risk and demand.

And thirdly, public demand.

The demand is huge.

World demand and supply

The overall level of household indebtedness stood at 113 of disposable personal income in mid 2012 down 21 percentage points from its pre crisis peak of 134 in 2007, but still well above the 1970 1999 norm of around 75 . In other words, Americans have much farther to go on the road to balance sheet repair which hardly suggests a temporary, or cyclical, shortfall in consumer demand.

BERKELEY We hear from surprisingly many quarters these days that governments in Europe and North America, and their central banks, should give up on the expansionary policies they have pursued to try to create jobs. The high unemployment currently afflicting the North Atlantic, critics of government stimulus maintain, is not cyclical but structural, and thus cannot be alleviated by policies that boost aggregate demand.

As at the end of March 2005, a total of 247,197 persons (61,835 families) were benefiting from the cyclical assistance under the Special Hardship programme.

We must reduce energy demand.