Population ageing and inflation with endogenous money creation (CInSt Research Seminar)

Speaker:

Igor Fedotenkov, postdoctoral research fellow at Center for Institutional Studies

This paper provides an explanation as to why population ageing is associated with deflationary processes. For this reason we create an overlapping-generations model (OLG) with money created by credits (inside money) and intergenerational trade. In other words, we combine a neoclassical OLG model with post-Keynesian monetary theory. The model links demographic factors such as fertility rates and longevity to prices. We show that lower fertility rates lead to smaller demand for credits, and lower money creation, which in turn causes a decline in prices. Changes in longevity affect prices through real savings and the capital market. Furthermore, a few links between interest rates and inflation are addressed; they arise in the general equilibrium and are not thoroughly discussed in literature. Long-run results are derived analytically; short-run dynamics are simulated numerically.

Working paper: full text

If you don't have HSE picture ID, If you don't have HSE picture ID, please, send by e-mail your surname and name to lovakov@hse.ru before 13:00, Thursday September 29.

The seminar will be held in English.

The seminar will take place on Thursday, September 29 at Myasnitskaya 24, building 3, room 424, 17.30.

If you have any questions, please contact our manager: lovakov@hse.ru