Latest / The Demographics Podcast with Fexingo: Aging Populations, Birth Rates, and Economic Impact
Why Fewer Kids Means Higher Inflation Forever
Episode 25 of The Demographics Podcast examines the structural link between falling fertility rates and persistent inflation. Lucas and Luna explain how a shrinking proportion of young people reduces the labor supply, pushes up wages, and forces central banks to keep interest rates higher for longer. They focus on a 2025 working paper from the Bank for International Settlements showing that countries with fertility rates below 2.1 have experienced 0.3 to 0.5 percentage points higher core inflation per year over the past decade. They discuss Japan as a leading indicator, where decades of low…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.