Corpus ID: 208196082

The smarter, the cheaper1 Aging, bounded rationality and the natural rate of interest

@inproceedings{Baksa2018TheST,
  title={The smarter, the cheaper1 Aging, bounded rationality and the natural rate of interest},
  author={D. Baksa},
  year={2018}
}
  • D. Baksa
  • Published 2018
  • This paper revises the secular stagnation hypothesis through the lens of bounded rationality. The consequences of population aging on medium and long-term equilibrium are at the center of today’s discussion of macroeconomics. According to the secular stagnation hypothesis in aging societies the GDP growth decelerates and the natural rate of interest decreases when the households cumulate more savings for the longer lifetime span. However, this model prediction can be rejected or weakly… CONTINUE READING

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