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Does population ageing impact inflation?

Author

Listed:
  • Marija Radulović

    (Faculty of Economics, University of Kragujevac, Kragujevac (Serbia))

  • Milan Kostić

    (Faculty of Economics, University of Kragujevac, Kragujevac (Serbia))

Abstract

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.

Suggested Citation

  • Marija Radulović & Milan Kostić, 2021. "Does population ageing impact inflation?," Stanovnistvo, Institute of Social Sciences, Belgrade, Serbia, vol. 59(2), pages 107-122, December.
    • Handle: RePEc:eto:stanov:v:59:y:2021:i:2:id:452
    DOI: 10.2298/STNV2102107R
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    References listed on IDEAS

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    1. McMillan, Henry M. & Baesel, Jerome B., 1990. "The macroeconomic impact of the baby boom generation," Journal of Macroeconomics, Elsevier, vol. 12(2), pages 167-195.
    2. Marija & Milan Kostiæ, 2020. "Globalization and economic growth of Eurozone economies," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 38(1), pages 183-214.
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