Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/140900
Authors: 
Spahn, Peter
Year of Publication: 
2016
Series/Report no.: 
Hohenheim Discussion Papers in Business, Economics and Social Sciences 04-2016
Abstract: 
Post Keynesian stagnation theory argues that slower population growth dampens consumption and investment. A New Keynesian OLG model derives an unemployment equilibrium due to a negative natural rate in a three-generations credit contract framework. Besides deleveraging or rising inequality, also a shrinking population is a triggering factor. In all cases, a saving surplus drives real interest rates down. In other OLG settings however, with bonds as stores of value, slower population growth, on the contrary, causes a lack of saving and thus rising rates. Moreover, the recent fall in market interest rates was brought about by monetary factors.
Subjects: 
overlapping generations
zero lower bound
deflation equilibrium
natural versus market interest rates
JEL: 
E12
E21
E43
J11
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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