# Price gap

- Canonical URL: https://www.gerhardmerk.de/price-gap-2
- Post ID: 592737
- Modified: 2023-07-25T21:13:51+00:00
- Language: en

## Definition

In central bank terminology, the liquidity (M 3) in the economy not yet absorbed by price increases and/or economic growth. Economy. The price gap widens/ narrows if real money growth is above/below trend growth (underlying growth: the long run average rate of economic growth for a country over a period of time) of real GDP. CETERIS PARIBUS inflationary pressures rise or fall in line with this increase or decrease. - Cf. ECB Monthly Bulletin, July 2005, pp. 51 ff. (presentation; relations to potential growth). Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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