First, providing a fiscal stimulus to economies where private demand has collapsed is appropriate.
When private demand suddenly plunges, it helps to have a well-oiled machinery of state that can quickly step in.
Private demand rose a more modest 1.3%, but even that was more than expected and cause for some encouragement.
Inventories, meanwhile, are at such low levels that, combined with a surge in private demand, stockbuilding could ignite cyclical growth.
To what degree will private demand accelerate as the positive contribution to GDP from reduced business inventory liquidation and government stimulus plays out?
The recovery in private demand in most advanced economies remains muted.
Blanchard spoke of the U.S. splitting away from other major economies on stronger private demand, yet the IMF cut its growth forecast 0.2 percentage points to 1.9%.
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The economic case for a growth strategy that combines hefty fiscal cuts with timid structural reforms is not obvious, especially when private demand is likely to stay weak.
In theory, if private demand for new euro assets matched the supply from governments and firms that will borrow in euros, there might be no effect at all.
The report merely repeats what it has said before - that "greater near-term flexibility in the path of fiscal adjustment should be considered in the light of lacklustre private demand".
The UK has arguably exacerbated its own problem by cutting public investment in infrastructure at the same time as private demand was so low, creating a double-whammy on the industry.
It believes there are not yet clear signals of a deflationary mindset in corporations or the public at large, and that a recovery in private demand will eventually pull the economy out of its slump.
Interest rates can be lowered to zero and money can be printed ad nauseum, but if excessive debt within the system is restraining private demand, the decline in the velocity of money will offset the benefit of the additional supply of dollars.
Unfortunately, points out Russell Jones, an economist at the Tokyo branch of Lehman Brothers, although the package is a big one, the size of the hole in private demand that it is being asked to fill is getting bigger by the day.
The company reported gains from improved private loan demand and a lower loan loss provision.
Elsewhere, it will happen only if vigorous private domestic demand picks up the baton from government stimulus.
Basically, supply-side policies work best when there is pent-up private sector demand.
At the same time, private consumer demand rises sharply, fuelling an upswing.
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On the new stats, the Chinese New Year saw private mainland demand to buy gold equal 0.71% of GDP in the first quarter.
Finally, she points out that, unlike in previous rallies, private domestic demand, rather than exports or fiscal loosening, is supplying much of the economic impetus.
Its private gold demand has risen so much faster that imports through Hong Kong alone leapt above that level last year, rising three-fold from 2010 to total 428 tonnes.
He said that with the global economy still struggling, "there are limits to the ability of domestic policy to stimulate private sector demand as the economy adjusts to a new equilibrium".
But when Mr Osborne drew up his plans to cut public borrowing, he did think he could count on the private sector - especially private sector demand from the rest of the world - to fill most of the gap.
The Keynesian story goes like this- if there is collapse in private sector demand due to a failure of business confidence or some other economic shock, then rather than suffer unemployment and all the other negative consequences of recession it is possible for government through public spending to replace the lost demand and steer the economy back to full employment.
We need changes in order to create greater private-sector demand for labour, which will boost wages and employment.
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The recent increase in government borrowing may not be cause to panic in the short term so long as private-sector demand is weak.
Private-sector demand is now flat and the public purse flatter.
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