Some economists worry that the ageing populations of industrial countries are going to start running down their savings just when the investment appetite of emerging economies is growing' (Economist, 6 May 1995)
Are they right that this is a concern?
Illustrate the effect of these phenomena on the world market for loanable funds. Which way does this argument predict the interest rate to adjust?
Should you take this into account when buying a house and considering the type of mortgage you should take?