BIS Quarterly Review

The latest BIS QR is here. Includes articles on ” Do debt service costs affect macroeconomic and financial stability?” and “Have public bailouts made banks’ loan books safer”

2 replies on “BIS Quarterly Review”

This looks interesting

When the baby boomers joined the workforce and started saving, money supply and property prices entered a rising trajectory. We conclude that demography was the long-run driver of this process, basing our argument on
data from 22 advanced economies for the 1950-2010 period. According to our lifecycle model, large working-age populations saved for their old age by investing in property and broad money instruments, such as deposits. In
the past, savings activity by baby boomers drove up property prices and also increased demand for money. As baby boomers retire, these dynamics will go into reverse. Falling demand for savings, including money and
deposits, might hinder banks in their efforts to collect deposits and thereby bring down excessively high loan-todeposit ratios.”

John Authers had a piece in the FT on the boomer effect on equity issuance back in December.

But very few economic models deviate from the permagrowth view.

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