The increase in elderly people in developed societies will continue to depress real interest rates, according to a working paper published by the Banque de France.

In Population ageing and the macroeconomy, Noëmie Lisack, Rana Sajedi and Gregory Thwaites use an overlapping generations model to examine key variables across richer countries. They find the fall in both birth and death rates in advanced economies explains a large proportion of the fall in real interest rates. The same factors also