Of course, the growing number of elderly means that demand for such services as health care and nursing can be expected to rise. However, if the supply capacity to meet such growing demand remains constrained, domestic demand as a whole will likely be sluggish.
Another subtle consequence of demographic trends that cannot be ignored is that the aging of the electorate may affect economic policy choices which in turn may have a negative impact on economic growth. Why deflation has continued for a prolonged period Next, I will discuss the second question, namely why deflation has continued for a prolonged period.