The concept explains how demand-pull (or demand-side) inflation arises in the economy. It uses case study examples to highlight the effects of demand-pull inflation and describes various advantages and disadvantages of the concept - it also provides success factors for calculating demand-pull inflation.
Demand-pull Inflation Definition
Demand-pull (or demand-side) inflation is a rise in the price level caused by rapid growth of aggregate demand. In contrast, supply-side inflation is a rise in the price level caused by slow growth (or decline) of aggregate supply (Baumol and Blinder, 2010).
Demand-pull Inflation Description *
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Demand-pull Inflation Strengths *
Demand-pull Inflation Weaknesses *
Examples of Demand-pull Inflation *
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Demand-pull Inflation Implementation *
Success Factors of Demand-pull Inflation *
Measures of Demand-pull Inflation *
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Demand-pull Inflation Videos *
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Demand-pull Inflation Web Resources *
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Demand-pull Inflation References (4 of up to 20) *
- Ali, M.S.B. (2011) What Drives Inflation in MENA Countries? International Journal of Economics and Finance, 3(4), pp.119-129.
- Baumol, W. J. and Blinder, A. S. (2010) Macroeconomics: Principles and Policies, Cengage Learning.
- Bordo, M.D., Humpage, O.F., Schwartz, A.J. (2010) U.S. Foreign-Exchange-Market Intervention and the Early Dollar Float: 1973 – 1981. NBER Working Paper No. 16647.
- Conway, E. (2009) 50 Economics Ideas You Really Need to Know, Quercus.
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