Demographics and interest rates in Asia

Serkan Arslanalp, Jaewoo Lee and Umang Rawat

Japan and the World Economy, 2019, vol. 50, issue C, 14-24

Abstract: Demographic developments have been regarded as one important cause of the long-term movement in global interest rates. This paper provides empirical evidence of the relationship between demographics and interest rates over a wide sample of advanced and emerging market economies. It also finds that capital account openness limits the direct sensitivity of a country's interest rates to its own demographics. The results suggest that future demographic developments will continue to apply downward pressure on the interest rates in Asia which foresees a rapid aging.

Keywords: Demographics; Interest rates; Capital account openness (search for similar items in EconPapers)
JEL-codes: E2 F3 J1 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:japwor:v:50:y:2019:i:c:p:14-24

DOI: 10.1016/j.japwor.2019.03.001

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