Demographics and Interest Rates in Asia

By Serkan Arslanalp, Jaewoo Lee, Umang Rawat

July 27, 2018

Preview Citation

Format: Chicago

Serkan Arslanalp, Jaewoo Lee, and Umang Rawat. Demographics and Interest Rates in Asia, (USA: International Monetary Fund, 2018) accessed December 21, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

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.

Subject: Aging, Demographic change, Financial services, Long term interest rates, Population and demographics, Population growth, Real interest rates

Keywords: Adjustment to saving, Aging, Aging speed, Asia and Pacific, Capital account openness, Demographic change, Demographics, Dependency ratio, Global, Interest rate, Interest rate adjustment, Interest rate environment, Interest rates, Long term interest rates, Rate of interest, Real interest rate, Real interest rate increase, Real interest rates, World interest rate, WP

Publication Details

Pages:

23
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2018/172
Stock No:

WPIEA2018172
ISBN:

9781484370308
ISSN:

1018-5941

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