Tuesday, November 7, 2023

A difference often overlooked


"It is useful to distinguish between supply and demand causes of rising inflation, because supply-driven (or cost-push) inflation is associated with a decline in output, while demand-driven (or demand-pull) inflation is associated with a rise in output."
from "Inflation in the U.S. Economy: Causes and Policy Options", Congressional Research Service

Wikipedia: "The Congressional Research Service (CRS) is a public policy research institute of the United States Congress. Operating within the Library of Congress, it works primarily and directly for members of Congress and their committees and staff on a confidential, nonpartisan basis. CRS is sometimes known as Congress' think tank due to its broad mandate of providing research and analysis on all matters relevant to national policymaking."


See also:
"The most important difference between cost-push and demand-pull inflation"

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