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