Open AccessDoes population ageing impact inflation?
Author(s) -
Marija Radulović,
Milan Kostić
Publication year - 2021
Publication title -
stanovništvo
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.153
H-Index - 7
eISSN - 2217-3986
pISSN - 0038-982X
DOI - 10.2298/stnv2102107r
Subject(s) - ageing , population ageing , inflation (cosmology) , economics , population , demography , biology , sociology , genetics , physics , theoretical physics
Modern society is characterised by clear and distinct demographic processes, such as the constant decline in the number of children born and the ageing population in developed countries, resulting from complex biological, economic, social, political, and other factors. Demographic changes observed through population ageing have an impact on the economy and inflation. Therefore, the aim of this paper is to examine the impact of population ageing on inflation in Economic and Monetary Union (EMU) countries. The paper?s authors used data from 1970 to 2016. The ARDL approach was used to test the long- and short-term relationship between population ageing and inflation. The results showed a positive relationship between population ageing and inflation in the long term and a negative relationship in the short term. The ageing population decreases inflation in the short term and increases inflation in the long term.