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Demographics and Interest Rates in Asia

Author

Listed:
  • Mr. Serkan Arslanalp
  • Mr. Jaewoo Lee
  • Umang Rawat

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.

Suggested Citation

  • Mr. Serkan Arslanalp & Mr. Jaewoo Lee & Umang Rawat, 2018. "Demographics and Interest Rates in Asia," IMF Working Papers 2018/172, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2018/172
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    References listed on IDEAS

    as
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    Cited by:

    1. Zhenqian Huang, 2019. "Maintaining financial stability in Asia and the Pacific," MPDD Policy Briefs PB101, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).

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