Briefing
How Do Demographics Influence r*?
Abstract: Demographic trends are evolving in the U.S. as well as globally, potentially affecting the behavior of interest rates. This includes the natural rate of interest, denoted r*. Through the lens of a simple model, we describe supply and demand channels through which these demographic trends may affect r* and show a range of estimates for the potential quantitative impact.
Keywords: nterest rates; natural rate of interest; r*; demographics;
Access Documents
File(s):
File format is text/html
https://www.richmondfed.org/publications/research/economic_brief/2024/eb_24-18
Description: Briefing
Authors
Bibliographic Information
Provider: Federal Reserve Bank of Richmond
Part of Series: Richmond Fed Economic Brief
Publication Date: 2024-06
Volume: 24
Issue: 18