Because the baby boomers have not yet started to retire in force and accordingly the ratio of retirees to workers remains relatively low, we are in a demographic lull. But short of an outsized acceleration of structural productivity or a major expansion of immigration, this state of relative tranquility will soon end.
This is also why last week ECB Banking Supervision communicated deadlines by which we expect banks' risk management strategies to be fully aligned with our supervisory expectations in the area of climaterelated and environmental risks.