Demand pull inflation arises where there is an increase in
aggregate demand[?] in an economy relative to
aggregate supply[?]. This is commonly described as "
too much money chasing too few goods[?]". This would not be expected to persist over time due to increases in supply, unless the economy is already at a
full employment level.
The term demand pull inflation is mostly associated with Keynesian economics.
- See also : Economics, cost push inflation