<p>It would lead to demand pull inflation as the goods in the said economy would not match the demand. But this depends on the time frame and how the producers in the said economy react.
Let me give you an example of immigration. Let's say large numbers of people from a country leave their country for the said country. Ignoring all social issues let's see what would happen. On one hand inflation would increase as the immigrants would cause high demand for goods and services which would drive the prices up. On the other hand, the immigrants would bring in supply of labour which  lead to a drop in real wages and decrease the prices of goods thereby reducing prices. So an increase in population may or may not lead to inflation </p>

CC BY-SA 3.0
2017-12-24T19:33:31.853Z
2017-12-24T19:33:31.853Z
Niza Siwale
<p>Let's say, for the sake of the argument, that the US population grows from 320 millions people to 420 millions overnight, wouldn't that increase inflation?</p>

<p>What if in reaction to this, the monetary mass is left untouched?</p>

<p>Thanks</p>

CC BY-SA 3.0
2017-12-24T17:22:04.343Z
This, most likely, results in a price inflation, but a formal theory and model could predict other channels that may lead to inflation.
london
CC BY-SA 3.0
2017-12-24T21:03:25.523Z
This is unanswerable unless you provide a lot more detail.  For example, when the population increases by 100M, do the numbers of homes, jobs, cars, schools, etc remain constant.  And do the new people start with any money or other assets?
Adam Bailey
CC BY-SA 3.0
2017-12-24T22:10:42.587Z
@AdamBailey, in a highly thoerised model, I think, you can find an acceptable answer to this question. Let's assume there were a sudden population shock... In that sense, we can still come up with theoretical answer.
london
CC BY-SA 3.0
2017-12-25T20:28:09.237Z
I  suspect the OP thinks "more people suddenly = more demand suddenly with output the same". While this is true in the short- short term, these people are production factors, they will work and they will produce more output. I may come back with a formal (toy) model to study this.
Alecos Papadopoulos
CC BY-SA 3.0
2017-12-28T14:44:49.543Z
@AlecosPapadopoulos I suspect [current meta consensus](https://economics.meta.stackexchange.com/questions/1827/unclear-question-please-insist-on-clarification) encourages you to ask for clarification rather than speculate.
Giskard
CC BY-SA 3.0
2017-12-28T16:59:52.067Z
@denesp Certainly, but allow me to come up with new ways of "asking for clarification". When the OP responds to a comment such as mine, it is I think stronger proof that the OP is interested in being involved in the process here, rather than just throw a question at us.
Alecos Papadopoulos
<macroeconomics>
Would a sudden increase in population, increase inflation?
Nathan Furnal
# Would a sudden increase in population, increase inflation?

(Asked by: username_0 on 2017-12-24)

Let's say, for the sake of the argument, that the US population grows from 320 millions people to 420 millions overnight, wouldn't that increase inflation?

What if in reaction to this, the monetary mass is left untouched?

Thanks

**Tags:** macroeconomics

> **Comments:**
> **username_1**: This, most likely, results in a price inflation, but a formal theory and model could predict other channels that may lead to inflation.  
> **username_2**: This is unanswerable unless you provide a lot more detail.  For example, when the population increases by 100M, do the numbers of homes, jobs, cars, schools, etc remain constant.  And do the new people start with any money or other assets?  
> **username_1**: @username_2, in a highly thoerised model, I think, you can find an acceptable answer to this question. Let's assume there were a sudden population shock... In that sense, we can still come up with theoretical answer.  
> **username_3**: I  suspect the OP thinks "more people suddenly = more demand suddenly with output the same". While this is true in the short- short term, these people are production factors, they will work and they will produce more output. I may come back with a formal (toy) model to study this.  
> **username_4**: @username_3 I suspect [current meta consensus](https://economics.meta.stackexchange.com/questions/1827/unclear-question-please-insist-on-clarification) encourages you to ask for clarification rather than speculate.  
> **username_3**: @denesp Certainly, but allow me to come up with new ways of "asking for clarification". When the OP responds to a comment such as mine, it is I think stronger proof that the OP is interested in being involved in the process here, rather than just throw a question at us.  

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## 1 answers

### Answer by username_5 on 2017-12-24. Score: 1

It would lead to demand pull inflation as the goods in the said economy would not match the demand. But this depends on the time frame and how the producers in the said economy react.
Let me give you an example of immigration. Let's say large numbers of people from a country leave their country for the said country. Ignoring all social issues let's see what would happen. On one hand inflation would increase as the immigrants would cause high demand for goods and services which would drive the prices up. On the other hand, the immigrants would bring in supply of labour which lead to a drop in real wages and decrease the prices of goods thereby reducing prices. So an increase in population may or may not lead to inflation


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