Canada and the United States. The simulation model determines the perfect foresight transition path of an economy in which … with the U.S., we first simulate the U.S. demographic transition, treating the U.S. as a closed economy. The time path of … is assumed to be an open economy which takes the U.S. interest rate as given. The simulations indicate that demographics …

economy. The time path of interest rates obtained from the U.S. simulations are then used in the Canadian simulations. In the … Canada simulations, Canada is assumed to be an open economy which takes the U.S. interest rate as given. The simulations … Canada and the United States. The simulation model determines the perfect foresight transition path of an economy in which …