For example, if our “reproduction rate is 1%” meaning our population doubles every 72 years ish, wouldn’t that essentially mean that inflation would be 1% less likely to occur each year because now there are more people that utilize this money supply both by taking and giving to the economy? And could this essentially be taken off of a discount rate that we might use when analyzing any future investments?
In: Economics
Population growth generally isn’t considered a factor with inflation.
More people is more demand…but also a larger workforce, so more supply.
There *may* be some niche circumstances–like a developing nation experiencing a baby boom with a huge number of babies that increases demand but they aren’t in the workforce to offset with supply–but those are limited in scope and relatively rare.
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