From Baby Boom to Debt Doom: The Silent Crisis Killing Economies (opens in new tab)

(innerkore.com)

7 pointsgagan20201y ago4 comments

4 comments

Recommended reading on this topic (demographic debt trap):

The Great Demographic Reversal Ageing Societies, Waning Inequality, and an Inflation Revival - https://link.springer.com/book/10.1007/978-3-030-42657-6 | https://doi.org/10.1007/978-3-030-42657-6

That's good. There was one point that I missed.

> Rise in debt ratios offset by falling interest rates, so debt service ratios mostly stable, or even declining

If inflation is higher forward looking due to demographic compression, interest rates cannot fall. This is the crux of the potential debt trap.

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Recommended reading on this topic (demographic debt trap):

The Great Demographic Reversal Ageing Societies, Waning Inequality, and an Inflation Revival - https://link.springer.com/book/10.1007/978-3-030-42657-6 | https://doi.org/10.1007/978-3-030-42657-6

That's good. There was one point that I missed.

> Rise in debt ratios offset by falling interest rates, so debt service ratios mostly stable, or even declining

If inflation is higher forward looking due to demographic compression, interest rates cannot fall. This is the crux of the potential debt trap.

j / k navigate · click thread line to collapse