demand-pull inflation
- noun
- /dɪˈmænd pʊl ɪnˈfleɪʃən/
- Specialized
:
inflación por demanda
- High levels of spending generate more demand for goods and services at the macroeconomic level and thus contribute to demand-pull inflation.
Examples
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As consumer confidence grows, increased spending leads to demand-pull inflation in the economy.
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Some degree of cost-push inflation may be a near-term risk, but the demand-pull inflation we saw in the 1970s is difficult to envision in the U.S. economy of this decade.
Blog text (21) -
(I think) I've read Warren Mosler describe it like this: taxes "make room" for the currency sovereign to spend without causing demand-pull inflation.
Blog text (2) -
Demand-pull inflation, which results from increasing consumer demand financed by easier availability of credit—a little greed is allowed in here—and 3.
Blog text (11) -
The introduction of the Fisher equation into macroeconomic literature accorded a special value to inflationary expectations, and this real interest channel is a significant addition to the channels explaining aggregate demand and demand-pull inflation.
Academic text (2018) -
When more money is circulated, it can drive demand-pull inflation as people buy more goods and services.
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In an expanding economy, rising demand often results in demand-pull inflation as suppliers struggle to keep up.
Synonyms
424
3.8
A general rise in prices that makes money buy less
2
3.1
An increase in the amount of money people pay for goods or services
Surface Forms
Morphology
demand-pull + inflation
The term literally combines 'demand' and 'pull' to signal that demand is "pulling" prices up, so a learner who knows 'demand', 'pull' and 'inflation' can infer the general idea. However, 'pull' is used metaphorically and the hyphenated, technical economic wording is domain-specific, so the precise economic nuance may not be fully predictable to a B1 learner without prior exposure.
Etymology
Demand-pull inflation may come from a simple picture: imagine many buyers (strong demand) all pulling at the same goods so sellers raise prices, as the pull lifts prices up. That's why it means 'prices rise' when people want more than is available.