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Demand Pull Inflation
(1940)
Outlined by English economist John Maynard Keynes (1883-1946), demand pull inflation describes a rise in prices triggered by an excess of demand for the available supply in the economy.
Keynes raised an important concept of an inflationary gap, which replaced the notion that inflation was caused by a rise in the money supply.
Also see: cost-push inflation, quantity theory of money
Source:
J M Keynes, How to Pay for the War (London, 1940)
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