Is it a problem if the population decreases while monetary inflation remains...

[beerlover]

It is not as big of a deal as population increasing while monetary inflation continues. When the population drops but the value of money decreases that means there is less people with the same amount of money available, which means a bigger chance for everyone to have some. Whereas if there are a lot more people but the inflation is higher that means some people will not have enough money at all because population increases and there are more people for same amount of money while also decreasing in value.

The main problem of inflation is still there and as long as there is a decrease in value of the fiat currency you are using that means it will not lead to anything good, decreasing or increasing population, however with over time decreasing is still better than increasing population if those are the only two things we are comparing.

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[Latviand]

But inflation isn't the only thing that you should be worried about, and population decline can have other negative or maybe even positive consequences (opinions of economists here can vary).

Inflation is just one of those impacts that this pandemic brought to us. There is something more about the economic crisis that we are experiencing, even those countries which have a good economy before, are now dealing with the economic crisis.

Monetary inflation will make more business to go down once it's open, this will probably decrease the value of money in the market.

To deal with this problem, the government should make a precise and more effective plan about this. Some other governments are already allowing some businesses to operate so that people can pay taxes during this quarantine.

[Sanugarid]

The population declines that are observable now are very small in relation to the whole population, it's usually 0.1-1%. Population is declining the fastest in the lower class, so not much value is being inherited, and it shouldn't cause a price inflation because it also lowers the demand for goods.

The lower class population are the biggest consumer and this contributes a lot in my opinion.

I don't think so, I have never see a chart where the lower class is the biggest consumer on this case, coz if we talk about the purchase power it would obviously be on the upper class population. We can't conclude this just because the lower class population is bigger than those above.

But inflation isn't the only thing that you should be worried about, and population decline can have other negative or maybe even positive consequences (opinions of economists here can vary).

I agree that there are other factors when it comes to inflation, I think the decrease is just one of them, remember the hyperinflation of German mark after World War 1, the war reparations took a toll to the masses of Germany, and in a sense, losing a war for conquest is a big factor for inflation.

With growing population in the world, and inflation I think these two are relative to each other somewhere coz the inflation is powered by demand especially when the economy of a developing country is rapidly moving upwards, so the more the people the more it would cause inflation. When the population decreases, the inflation won't remain, it may just be slowed.

[peterurb]

Even the population decreases it will not be more, that inflation rate so we can just make lower inflation and it can be OK. But inflation is not OK and it is not normal. People are now just not thinking about it or they just don't know it and it is not fair. If I would know it I would buy Dow Jones or some stocks of companies, cause FED will just support them and I will have real profit.

[abhiseshakana]

Even the population decreases it will not be more, that inflation rate so we can just make lower inflation and it can be OK. But inflation is not OK and it is not normal. People are now just not thinking about it or they just don't know it and it is not fair. If I would know it I would buy Dow Jones or some stocks of companies, cause FED will just support them and I will have real profit.

Uncontrolled inflation is bad and causes a crisis for the economy. But some people argue that low inflation figures also indicate an economic downturn. If the low inflation rate indicates sluggish purchasing power. The impact of inflation is too low to encourage the central bank to reduce interest rates so that people are not too fond of saving and spending or investing money. The sluggish economy will have an impact on the termination of employment due to minimal profits and not meeting sales targets.

[bitmover]

Uncontrolled inflation is bad and causes a crisis for the economy. But some people argue that low inflation figures also indicate an economic downturn. If the low inflation rate indicates sluggish purchasing power. The impact of inflation is too low to encourage the central bank to reduce interest rates so that people are not too fond of saving and spending or investing money. The sluggish economy will have an impact on the termination of employment due to minimal profits and not meeting sales targets.

There is a mainstream opinion that a low inflation is good for the economy, while a negative or zero inflation is bad.
But good to whom?

Inflation means your money is decreasing value, while governments are keeping that value difference for them.
I don't trust that opinion and economic researches, as those researches are mostly paid by governments themselves.


Just for fun, when your exchange rate is 1 dolar per kilogram

[davis196]

I'm using monetary inflation (based from monetary policy) and effective inflation (the price increase of certain "essential items" taken as an average increase in price.

Typically speaking is a population fall for a country or a certain area that uses the same currency a problem as the cost of standard items will increase and the value of the currency will fall because everyone might have more of it (other than a few that may still have nothing) potentially due to inheritance and a few other things.

Has something like this ever happened on a long term or do a government normally incentivise reproduction/immigration if something like this were to happen (causes of this could be anywhere from a nuclear explosion to chemical tests/contamination to a change in socioeconomic attitudes). I'm just wondering if this is a massive problem if this isn't corrected by a government.

If the population of a certain country or region decreases,the economy of that region will sooner or later start to stagnate,due to the lack of work force and consumers.The inflation that might be created in that region might help for keeping the economic activity,but the long term decrease of the population will lead to recession and prices going down(deflation).I live in a country,where the population is decreasing and the economy will face huge difficulties by 2050.