demand inflation

"There is no demand inflation at the moment because the economy is so slow."

Membership in the euro zone demands inflation rates well below that level.

Demand inflation encourages economic growth since the excess demand and favourable market conditions will stimulate investment and expansion.

One is that the very large fall in output since 2008, coupled with a relatively small fall (by historic standards) in employment, has created demand inflation.

Party members in many states, including Nebraska, demanded inflation of the currency through issuance of paper or silver currency, allowing easier repayment of debt.

The trade union and communist party allies of the ruling African National Congress have demanded inflation targets be scrapped or the band lifted to help ensure lower interest rates.

Labour federation COSATU have demanded inflation targets - currently at 3 to 6 percent - be scrapped and that fiscal police be loosened to help cut poverty.

"Based on changes in the domestic and international macroeconomic and financial situation, we will bring the interest tool into play in a proper fashion to curb demand inflation and stabilise inflationary expectations."

Powerful labour federation COSATU has demanded inflation targets be scrapped and interest rates cut, accusing the bank of ignoring the plight of millions of poor South Africans.

Zuluaga said the 5 percent target was very close to what economists estimate Colombia's maximum potential growth rate would be without generating demand inflation, a figure put at between 5.5 percent and 6 percent. '

Indeed, it has been argued that the government is the most likely source of excess demand inflation: through its policy measures, it can finance its own spending by raising taxes, by borrowing or by printing money.

Post-Keynesian critics of this view have tended to place more emphasis on increases in government spending, in domestic private spending or in export demand as the sources of excess demand inflation, and less emphasis on monetary growth.

“When you raise the minimum wage, it could lead to a rise in inflation, but it is not the sort of demand inflation that will be repeated into the future, it is a one-off,” he told the Financial Times on Tuesday night.

Referring to criticism from South Africa's trade unions that have demanded inflation targets be scrapped, Mnyande said the South African Reserve Bank's (SARB) current monetary policy stance was appropriate to tackle inflation. '

As Bennett McCallum of Carnegie Mellon University also notes in the Cato Journal, the forces that now demand inflation from time-to-time would demand a change in the gold weight of the currency as happened in the 1930s.

The logic is that boosted capital investment will churn out more consumer goods to meet pent-up demand, thus easing the prospect of consumer-driven demand inflation, noted Mauricio Oreng, an economist at Itau Corretora in Sao Paulo. '