Economics

New Study Says Aging Populations Will Drive Higher Interest Rates

  • Demographics to reverse multi-decade global trends: BIS
  • Higher real rates, inflation seen; Fed research questioned
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Aging populations in China and Europe are poised to transform the global economy by sparking a jump in interest rates that may set the stage for a showdown between the old and the young.

So say Charles Goodhart and Manoj Pradhan, painting a sweeping picture of the future economic landscape in a new paper published by the Bank for International Settlements.