HOW DEMOGRAPHY AFFECTS THE ECONOMY – IMPACT OF POPULATION AGEING ON INFLATION Cover Image

HOW DEMOGRAPHY AFFECTS THE ECONOMY – IMPACT OF POPULATION AGEING ON INFLATION
HOW DEMOGRAPHY AFFECTS THE ECONOMY – IMPACT OF POPULATION AGEING ON INFLATION

Author(s): Paulina Broniatowska
Subject(s): Supranational / Global Economy, Evaluation research, Demography and human biology, Socio-Economic Research
Published by: Szkoła Główna Gospodarstwa Wiejskiego w Warszawie
Keywords: population ageing; inflation; demography;

Summary/Abstract: The motivation of this paper is to check whether inflation is linked to the population age structure. To check this hypothesis, a panel data model is used. We regress the changes in CPI on a set of macroeconomic variables. The results of the estimations suggest that there may be a relation between demography and low-frequency inflation. A larger old-age dependency ratio is correlated with lower inflation. This may confirm some of the previous empirical findings that ageing is deflationary when related to increased life expectancy.

  • Issue Year: XIX/2018
  • Issue No: 1
  • Page Range: 1-11
  • Page Count: 11
  • Language: English
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