While the lack of volatility in the financial markets during this current summer lull seems to be getting many people concerned in a Minsky-type “stability is stabilizing” fashion, it does, however, allow for a little more space to think about some of the bigger picture issues the economy faces, and one of the biggest is undoubtedly the great demographic shift currently underway globally. Declining fertility rates and aging populations are changes that will have immense ramifications for both financial markets and the real economy, though exactly what the implications will be is still somewhat open to debate. In this week’s Economics Weekly, we scratch the surface on a number of these issues.
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Richard de Chazal, CFA is a London-based macroeconomist covering the U.S. economy and financial markets.