The aging of the population will not only reduce the ratio of the working population, but will lead to a fall in investment and the capital stock as the saving rate declines, and increase the downward pressure on economic growth per capita. In addition, the decline in the population must also be taken into account.
What is the ECB’s view of the situation in Slovakia? First, we conduct monetary policy for the euro area as a whole rather than for individual countries. Second, if we raised interest rates to curb household debt, the effect would also impact the corporate sector and investment. That is why there are macroprudential instruments at the disposal of national authorities.