# Pigou effect

> English word · Noun

## Definitions
1. The stimulation of output and employment caused by increasing consumption due to a rise in real balances of wealth, particularly during deflation.

## Etymology
Coined by American economist Don Patinkin in 1948 after English economist Arthur Cecil Pigou.

## Source
Compiled from Wiktionary via kaikki.org (CC BY-SA). Data vintage: 2026-05-06.
Canonical page: https://plainspell.com/en/word/pigou-effect