Demographics and Interest Rates in Asia

Author/Editor:

Serkan Arslanalp ; Jaewoo Lee ; Umang Rawat

Publication Date:

July 27, 2018

Electronic Access:

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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.

Series:

Working Paper No. 18/172

Subject:

English

Publication Date:

July 27, 2018

ISBN/ISSN:

9781484370308/1018-5941

Stock No:

WPIEA2018172

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

23

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