Eli5 If the amount of currency stayed the same and the population increases wouldn’t it reverse inflation?

Question

Eli5 If the amount of currency stayed the same and the population increases wouldn’t it reverse inflation?

In: Economics

Answer 1

You can reverse inflation. It’s called deflation, and is a symptom of incredibly hard economic times, so we try to avoid it. It is possible, though is mostly based on the transfer of goods and services rather than the direct size of population.