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Ageing and Financial Stability

  • E. Philip Davis
Conference paper

Abstract

This article reviews some of the potential pitfalls for systemic financial stability that may arise from the process of population ageing in coming decades. Although the issues are of global relevance, they will most directly affect OECD countries, such as those in the EU. We draw on the extant theoretical and empirical literature on ageing and financial instability, including projections of the macroeconomic effects of ageing and experience of recent financial crises. Our focus is largely on the forms of widespread financial instability that may affect the macroeconomy, in line with the following definition of systemic risk “a sequence of events entailing heightened risk of a financial crisis, where a financial crisis is seen in turn as ‘a major and contagious collapse of the financial system, entailing inability to provide payment services or to allocate funds for investment”1.

Keywords

Asset Price Mutual Fund Institutional Investor Credit Risk Systemic Risk 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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  • E. Philip Davis

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