Analysis of the Impact of Population Aging on Inflation

Abstract

The essay investigates the impact of population aging on inflation. Inflation is a long-term macroeconomic problem. For a long time, domestic and foreign experts have focused on the economic factors that cause inflation, while ignoring a major ongoing event, namely, population aging. As aging becomes more and more serious, it attracts more and more attention. Aiming at the above problems, this paper adopts the review method to carry out studies on the connection between inflation and population aging, which is divided into three major parts; the first part briefly analyzes the aging population that exists now; the second part describes the process and pattern of inflation; the third part explores the effect of population aging on inflation. It is concluded that the rate of saving will decline as the population ages, weaken the interest rate elasticity of total consumption, and reduce the labor-intensive industries, thus inhibiting the economic development of China.