Finance has recorded some of the strongest effects of demographic change. Interest rates have trended steadily downwards, at least until about 2017/2018 (Diagram 1.5). With inflation remaining low, this has meant that real interest rates, i.e. after adjustment for the current inflation rates, have also been falling. Falling interest rates have led to rising asset prices. Despite some interruption from the Great Financial Crisis (GFC) over 2008/2009, this too has been happening, notably with equity and housing prices.
