ratchet effect

Origin of ratchet effect

First recorded in 1965–70
Dictionary.com Unabridged Based on the Random House Unabridged Dictionary, © Random House, Inc. 2018

British Dictionary definitions for ratchet effect

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
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