Who coined this term?

Good question. Chances are it just got started used in general due to the Stereotype that Homosexual people act well, Gay. That kind of over the top happy/joyous homosexual stereotype is a pretty common one, no matter how true or false it is. So yeh, I doubt it was a single person or peoples which coined it, just kinda came more common to use it in that sense.
 
well youre on the right track. it just started getting used because of the definition of gay as unihibited etc.. as in, not inhibited by "normal" or "right" sexual practices
 
Wikipedia, "The use of gay to mean "homosexual" was in origin merely an extension of the word's sexualised connotation of "carefree and uninhibited", which implied a willingness to disregard conventional or respectable sexual mores. Such usage is documented as early as the 1920s, and there is evidence for it before the 20th century,[1] "
 
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