- Migration can mitigate some of the effects of the coming demographic changes, but it cannot push back the tide
- Demographic shifts would have varying and sometimes contradictory effects on inflation
- Likely result would be segmented inflation dynamics
Makhlouf is speaking about the challenges central bankers could face with demographic shifts and therefore with their price stability mandate.
"Older population could damp aggregate demand and limit price growth but fewer working-age people risk tightening labour markets and push up wages."
