demand pull inflation ppt
DESCRIPTION
nTRANSCRIPT
DEMAND PULL INFLATION
LESLYN LACDAO
• SUSTAINED INCREASE IN THE PRICES OF GOODS AND SERVICES RESULTING FROM A HIGH DEMAND, STIMULATED BY EASY CREDIT AND HIRE PURCHASE OFFERS ACCOMPANIED BY INSUFFICIENT SUPPLIES.
• THE MOST COMMON CAUSE OF INFLATION
• PARKIN AND BADE GIVE THE FOLLOWING EXPLANATION FOR DEMAND-PULL INFLATION:
• "THE INFLATION RESULTING FROM AN INCREASE INAGGREGATE DEMAND IS CALLED DEMAND-PULL INFLATION. SUCH AN INFLATION MAY ARISE FROM ANY INDIVIDUAL FACTOR THAT INCREASES AGGREGATE DEMAND, BUT THE MAIN ONES THAT GENERATE ONGOING INCREASES IN AGGREGATE DEMAND ARE
• INCREASES IN THE MONEY SUPPLY
• INCREASES IN GOVERNMENT PURCHASES
• INCREASES IN THE PRICE LEVEL IN THE REST OF THE WORLD
WHAT CREATES DEMAND-PULL INFLATION?
• GROWING ECONOMY
• EXPECTATION OF INFLATION
• DISCRETIONARY FISCAL POLICY
• STRONG BRAND
• TECHNOLOGICAL INNOVATION
EXAMPLE:
REFERENCES:
• HTTP://USECONOMY.ABOUT.COM/OD/INFLATIONFAQ/F/DEMAND-PULL-INFLATION.HTM
• HTTP://ECONOMICS.ABOUT.COM/CS/MONEY/A/INFLATION_TERMS.HTM
• HTTP://ANSWERS.YAHOO.COM/QUESTION/INDEX?QID=20080318155950AANRYCN