We present a theory of light amplification in a cavity based on irreversibility of coherent excitation. It is predicted that the irreversibility of coherent excitation leads to a new way of lasing which is different from lasing with and without inversion in the conventional sense. Lasing with dynamically induced inversion is possible in coherently driven systems in which there is no conventional source of irreversible population pumping. This laser displays two interesting and important features: the maximum gain with inversion is substantially greater than gain without inversion, and in spite...