demand-pull inflation


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Related to demand-pull inflation: Cost-Push Inflation

demand-pull inflation

n
(Economics) See inflation2

demand′-pull` infla′tion


n.
inflation in which rising demand results in a rise in prices. Compare cost-push inflation.
[1955–60]
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.demand-pull inflation - inflation caused by an increase in demand or in the supply of money
inflation, rising prices - a general and progressive increase in prices; "in inflation everything gets more valuable except money"
References in periodicals archive ?
Going back to our textbook definition of what causes inflation, we list down two main causes-cost-push inflation and demand-pull inflation.
It's a separate story, though, that demand-pull inflation has already been in sight as the economy is growing fast.
Life Cycle Hypothesis suggested that people in middle working age (40 to 64 years) are net savers while retirees and the youth are relatively more dis-savers, thus, rise in proportion of middle age working population leads toward decrease in demand-pull inflation (Imam, 2013).
The energy price inflation therefore through cost push inflation and demand-pull inflation has a major impact on core inflation itself, thereby playing a significant role in macroeconomic health of a country.
Demand-pull inflation will rise, but stay at manageable, low single-digit levels.
Empirical results suggest that Pakistan is experiencing demand-pull inflation (rather than cost-push) which points to interest rate money supply net foreign aid and grants (except money supply) as significant causal factors explaining approximately 43.
Second, even when (if) the expanded money supply does leak onto the high street, there is still a lot of slack to be absorbed before demand-pull inflation becomes a big threat.
Governments can use indirect monetary instruments and macro-prudential measures to manage liquidity, however S&P views these instruments as insufficient particularly when an economy is faced with imported, demand-pull inflation, as well as supply-push inflation as was the case in the GCC during 2007-2008.
Accordingly, demand-pull inflation is likely to materialize in the medium term," the bank said.
The demand-pull inflation emerged from 2004 and it continued till 2008.
Of the two, the demand-pull inflation that has resulted from historically unprecedented growth in China and India is the more significant cause of fiscal and monetary policy decision difficulties in the U.

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