{
  "title": "Demographics and Interest Rates in Asia",
  "publication": "IMF Working Papers, July 27, 2018",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2018/07/27/demographics-and-interest-rates-in-asia-46116",
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  "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.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- Demographic developments have been regarded as one important cause of the long-term movement in global interest rates.\n- This paper provides empirical evidence of the relationship between demographics and interest rates over a wide sample of advanced and emerging market economies.\n- The paper finds that capital account openness limits the direct sensitivity of a country’s interest rates to its own demographics.\n- The results suggest that future demographic developments will continue to apply downward pressure on the interest rates in Asia which foresees a rapid aging."
    },
    {
      "heading": "Key findings and empirical results",
      "content": "- Demographics are an important determinant of long-term movements in global interest rates.\n- Capital account openness reduces the direct sensitivity of a country’s interest rates to its own demographic changes.\n- Future demographic developments in Asia, characterized by rapid aging, are expected to exert downward pressure on interest rates in the region."
    },
    {
      "heading": "Policy implications and considerations",
      "content": "- Policymakers in Asia should account for the downward pressure on interest rates arising from demographic trends, particularly rapid aging.\n- The degree of capital account openness can alter how domestic demographics translate into domestic interest rates; policy choices on capital account openness will therefore affect interest rate dynamics.\n\n---\n\n Content in this bundle\n\n- Demographics and Interest Rates in Asia, WP/18/172, July 2018\n  - Demographics and Interest Rates in Asia, WP/18/172, July 2018 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Demographics and Interest Rates in Asia, WP/18/172, July 2018 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2018/07/27/demographics-and-interest-rates-in-asia-46116"
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    "Authors: Serkan Arslanalp, Jaewoo Lee, Umang Rawat",
    "Published: July 27, 2018",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781484370308.001",
    "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.",
    "The paper 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.",
    "Demographics are an important determinant of long-term movements in global interest rates.",
    "Capital account openness reduces the direct sensitivity of a country’s interest rates to its own demographic changes.",
    "Future demographic developments in Asia, characterized by rapid aging, are expected to exert downward pressure on interest rates in the region.",
    "Policymakers in Asia should account for the downward pressure on interest rates arising from demographic trends, particularly rapid aging.",
    "The degree of capital account openness can alter how domestic demographics translate into domestic interest rates; policy choices on capital account openness will therefore affect interest rate dynamics.",
    "**Demographics and Interest Rates in Asia, WP/18/172, July 2018**"
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