What are the effects of demographic changes on the real interest rate in Japan? We present a dynamic general equilibrium model in which demographic changes are captured by exogenous changes in the ratio of workers to the total population. Our model predicts that a decline in this ratio in the...

This paper investigates the phenomenon in which Japan's household saving rate showed a sharp decline even during the long stagnation period called "the lost decade." Our empirical results show that the sharp decline in the saving rate in the 1990's can be explained by the significant impact of...

This paper examines the determinants of long-term bond yields through a panel data analysis of forward rates in 10 developed countries. We confirm that in addition to inflation expectations and the labor productivity growth rate, which influences the natural rate of interest, fiscal conditions,...