The aging of the population will not only reduce the ratio of the working population, but will lead to a fall in investment and the capital stock as the saving rate declines, and increase the downward pressure on economic growth per capita. In addition, the decline in the population must also be taken into account.
This, over time, will add further downward pressure on economic growth overall. If these developments lower the expected growth rate even more, prices will come under further downward pressure. B. Importance of maintaining the public’s confidence in policymakers  It follows from the foregoing that in order to achieve sustainable economic growth with price stability, it is essential to raise the potential growth rate.