Demand-Pull Inflation

Discipline: Economics

Outlined by English economist John Maynard Keynes (1883-1946) in his 1940 book How to Pay for the War, demand pull inflation describes a rise in prices that occurs due to increasing demand.

When aggregate demand in the market increases, too much money chases too few goods, and the prices increase.

Also see: cost-push inflation, inflation, quantity theory of money

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