Demand-pull

From MarketsWiki

Jump to: navigation, search
Update In Progress!

This page is currently under development by Christine Nielsen.

If you have changes to add, please coordinate your efforts
via the "talk" tab for this page, or by direct communication with the main contributor.



Demand-pull is a situation which is described in Keynesian economics. According to British economist John Maynard Keynes, inflation can be caused by increase in demand and/or increase in cost.

Demand-pull describes when an increase or upward trend in spendable money leads to an increase in competition for available goods and services, in addition to a jump in consumer prices.[1]

In turn, cost-push attributes the basic cause of inflation to supply side factors.

Demand-pull inflation can occur, for example, when consumers suddenly find themselves with more money in their pocket - such as after a tax cut.[2]


This page needs a sponsor.
Put your logo here!
Email us for information
on how to support MarketsWiki.

Resources


References

  1. ↑ Demand-Pull. Merriam Webster. Retrieved on July 10, 2008.
  2. ↑ Glossary - Demand-pull Inflation. The Guardian. Retrieved on July 10, 2008.
Retrieved from "http://www.marketswiki.com/mwiki/Demand-pull"
Personal tools