But financial markets have also been unsettled by other factors, including the types of policy measures introduced as the Shanghai index began declining, the magnitude of recent capital outflows, and the questions raised by the decision to allow the RMB to depreciate by 3.5% over two days in August.
But governments should also reduce the burden of ageing itself by, for example, reforming public pay-asyou-go pension schemes. Germany and the UK have recently announced a gradual rise in the statutory retirement age to 67 and 68. As this measure appears quite effective to absorb an increasing life expectancy 6 , other European countries should follow this example. 2  J.H.