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Impact of Demographics on Real Interest Rates by serenaye1426 is a document available to read on EtoBox.
Blanchard attributes the decline in the equilibrium real interest rate (r∗) to increased life expectancy and saving for longer retirements, while Summers focuses on demographic shifts with a rising ratio of older to younger individuals. The document discusses how income redistribution towards higher-income individuals leads to increased savings, and how investment demand can raise r∗ despite its typical negative correlation with it. Additionally, it highlights the inelastic nature of saving and investment i
- Author
- serenaye1426
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- EN