The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Inflationary Gap

  • David Vines
Reference work entry


This term originates from the analysis of inflation put forward by Keynes in How to Pay for the War (1940). If there is a gap between the level of aggregate demand for goods and services and the quantity of available supply, then this will cause inflation.

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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • David Vines
    • 1
  1. 1.