The Impact of Population Aging on Financial Market Structures and Policy Implications

Korea is aging at a rapid pace, causing concern about the resulting socio-economic impacts. This study analyzes the expected changes in the financial markets and macroeconomic changes resulting from aging and seeks possible policy measures to mitigate the negative impacts of these changes. The estimated changes will be useful information for all market players to prepare for the future socio-economic changes.The policy implications based on the analyses are as follows: First, explore new roles for monetary policies. Second, use labor market approaches and financial market approaches together to respond to aging. Third, employ strategies using the income account to maintain current account balance