demand-pull inflation

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Demand-pull inflation

A theory of inflation or price increases resulting from so-called excess demand. Related: Cost-push inflation.

Demand-Pull Inflation

In Keynesian economics, a significant increase in prices that occurs when there is an increase in demand for goods and services such that the increase outpaces supply. The equivalent of demand-pull inflation can occur for any one product, but the term refers to situations where this happens throughout the economy. Demand may increase for a number of reasons; one example is an increase in the money supply. If persons have more money, they are more likely to buy goods and services which, in turn, drives up prices. One way to think of demand-pull inflation is to conceptualize it as too many dollars chasing too few products.

demand-pull inflation

Rising consumer prices resulting from the demand for goods and services exceeding supply. Demand-pull inflation is likely to enhance corporate profits because businesses are able to increase the prices they charge without corresponding increases in their costs. Compare cost-push inflation.

demand-pull inflation

see INFLATION.

demand-pull inflation

a general increase in prices caused by a level of AGGREGATE DEMAND in excess of the supply potential of the economy. At full employment levels of output (POTENTIAL GROSS NATIONAL PRODUCT), excess demand bids up the price of a fixed real output (see INFLATIONARY GAP). According to MONETARISM, excess demand results from too rapid an increase in the MONEY SUPPLY. See INFLATION, QUANTITY THEORY OF MONEY, COST-PUSH INFLATION.
References in periodicals archive ?
New arrangements have been established for a number of off-aircraft items as well, such as the Tornado Nose Radar, which has shifted from a push system to demand pull, providing line replaceable units (LRUs) for on-aircraft scheduled maintenance and squadron-level rectification activity, successfully delivering substantially increased availability with 55 percent less inventory.
JIT is based on a demand pull strategy, meaning that only after an item is sold, a replacement item is pulled from the last position in the system (i.
Demand created by availability and novelty sustained sales until demand pull took over.
Demand pull happens when there is increase in demand for general goods and services in the economy.
The decline in growth is mainly due to China Petroleum, Sinopec part of the natural gas field planned reduction, but by the rapid growth of natural gas and other factors to bring the demand pull, May still maintain double-digit growth.
High consumer spending, rising bank lending and exceptionally low interest rates and rising demand deposits will maintain the current demand pull inflation.
The scenario of Inflation consistency appears very interesting, initiation of inflation starts with demand pull inflation (from 2004), and cost push inflation took over the place with almost at end of the demand pull, creating significant decline in the economic growth (from 2008).
Take copper, inventories are drawing, demand pull out of China's very strong and the LME-Shanghai arbitrage is still wide open, all supporting much higher copper prices.
Hayagriv said the current spurt in prices was due to the demand pull especially from China and India.
ISLAMABAD, April 25, 2009 (Balochistan Times) -- PIDE-Inflation Expectations survey-2009 revealed that both demand pull and cost push factors are responsible for current inflation in Pakistan, particularly global economic conditions are important contributors to current inflation, followed by food prices, and oil prices.
Reserves are currently around 76pc full, which is normal for this time of year, but sudden peaks in demand pull so much water through the network it can reduce water pressure at customers' taps.