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How will the world-wide decline in real interest rates associated with global aging affect small open economies (SOEs …) with aging populations? Lower interest rates will result in higher capital-labor ratios and increased wages; higher wages …, in turn, will be passed on to pension benefits, exacerbating aging-related fiscal pressures. The pass-through effect will …
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Intro -- Contents -- I. INTRODUCTION -- II. SOME BACKGROUND ON GLOBAL DEMOGRAPHIC CHANGE -- III. MODELING THE ECONOMIC IMPACT OF DEMOGRAPHIC CHANGE -- IV. HOW WILL DEMOGRAPHIC CHANGE AFFECT THE GLOBAL ECONOMY? -- V. SENSITIVITY ANALYSIS -- VI. CONCLUSIONS AND POLICY IMPLICATIONS -- Appendix: The...
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