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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

demand-pull inflation

see INFLATION.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
If the households' propensity to deleverage is 100 (every dollar used to deleverage--no demand pull), all of this will be channelled into reduced debt exposure, possibly in the form of lower mortgages.
Demand pull inflation occurs when there is an increase in aggregate demand, categorized by the four sections of the economy viz, households, businesses, governments and foreign buyers.
The government can adopt expansionary fiscal and monetary policies, which may cause demand pull inflation; simultaneously it has the power to impose indirect taxes or increase tax rate that may result in cost push inflation and finally it can generate "price/wage spiral" which trigger a process in which workers trying to keep their wages up with rise in prices and employers passing higher costs on to consumers.
However, it is important to note that inflation in Kuwait was demand pull inflation rather than speculative price increases.
"What has encouraged me in the White Paper is that they have recognised the technical push argument is only half the story; there's a demand pull as well.
The communication sets out a long but non-exhaustive list of such instruments, dividing them up into those relating to technology development (technology push), and those relating to the market introduction process (demand pull).
We have a very strong interest in creating a woodframe culture in Indonesia and creating a demand pull. The market there depends on demand pull, not supply push.
The first measure is needed to assess the importance of demand pull, while the second measure is needed to determine the importance of supply push.
One of the main objectives in creating a more agile force is minimization of the deployed footprint, drawing resources back to the point where they can be used most efficiently and flexibly, based on demand pull. This will involve such changes as shifting off-platform repair activity out of the operational theater for all but the most demanding operations and reducing demand for those resources by reducing the need for logistics support, in particular by improving the performance and reliability of equipment.
chain management focus to a demand pull consumption replenishment system
"Demand pull from the West, and the emergence of China and India as LNG buyers, is changing Asian market attitudes," said Hendrik Gordenker, a White & Case partner who heads an LNG practice group.