ratchet effect

noun

1. intermittent growth, increase, expansion, or the like:

   the ratchet effect of defense expenditures.

ratchet effect

noun

1. economics an effect that occurs when a price or wage increases as a result of temporary pressure but fails to fall back when the pressure is removed

Word History and Origins

Origin of ratchet effect¹

First recorded in 1965–70

Example Sentences

VAT rates show little evidence of a ratchet effect during the era of price stability.

From The Daily Beast