Impact of Demographic Changes on Inflation and the Macroeconomy

Ongoing demographic changes have brought about a substantial shift in the size and age composition of the population, which are having a significant impact on the global economy. Despite potentially grave consequences, demographic changes usually do not take center stage in many macroeconomic policy...

Full description

Saved in:
Bibliographic Details
Published inKDI Journal of Economic Policy Vol. 40; no. 1; pp. 1 - 30
Main Authors YOON, JONG-WON, KIM, JINILL, LEE, JUNGJIN
Format Journal Article
LanguageKorean
Published 2018
Subjects
Macroeconomic Impact
Inflation
Savings and Investment
Monetary Policy
Demographic Changes
Population Aging
Fiscal Policy
Online AccessGet full text

Cover

More Information
Summary:Ongoing demographic changes have brought about a substantial shift in the size and age composition of the population, which are having a significant impact on the global economy. Despite potentially grave consequences, demographic changes usually do not take center stage in many macroeconomic policy discussions or debates. This paper illustrates how demographic variables move over time and analyzes how they influence macroeconomic variables such as economic growth, inflation, savings and investment, and fiscal balances, from an empirical perspective. Based on empirical findings-particularly regarding inflation-we discuss their implications on macroeconomic policies, including monetary policy. We also highlight the need to consider the interactions between population dynamics and macroeconomic variables in macroeconomic policy decisions.
Bibliography:KISTI1.1003/JNL.JAKO201816269582376
ISSN:2586-2995
2586-4130