.@bankofengland Staff Working Paper No. 701 'Demographic Trends & the Real Interest Rate': calibrated #Neoclassical #OverlappingGenerations model accounts 4 160bp of the 210bp fall in #Rstar over 1980-2015 - greater propensity to save and hold wealth from higher #LifeExpectancy. pic.twitter.com/BvwfTVlRfD
— Satyen Baindur (@Satyen_Baindur) February 12, 2018
The #BoE working paper compares #OLG model simulations with #Rstar estimates from Holston, Laubach, Williams 2017 @federalreserve @sffed as below, and projects a further 37bp decline in #Rstar by 2050 (& even beyond) #AEs in aggregate; + also v interesting indiv cntries esp USA pic.twitter.com/y2Zw5XxsEY
— Satyen Baindur (@Satyen_Baindur) February 12, 2018
