What does population ageing mean for net foreign asset positions?

Noëmie Lisack, Rana Sajedi and Gregory Thwaites

How sound is the argument that current account balances are driven by demographics? Our multi-country lifecycle model explains 20% of the variation in observed net foreign asset positions among advanced economies through differences in population age structure. These positions should expand further as countries continue to age at varying speeds.

Continue reading “What does population ageing mean for net foreign asset positions?”