In economics, the demand-pull theory is the theory that inflation occurs when demand for goods and services exceeds existing supplies. According to the demand pull theory, there is a range of effects on innovative activity driven by changes in expected demand, the competitive structure of markets, and factors which affect the valuation of new products or the ability of firms to realize economic benefits.

See also

• Demand-pull inflation
• Quantity theory of money
  Quantity theory of money
  In monetary economics, the quantity theory of money is the theory that money supply has a direct, proportional relationship with the price level....
  
  
• Cost-push theory