A declining and aging population could affect economic activity not only through simple changes in labor input but also through various other channels.12 It also could have an impact on other factors such as social security.13 Some argue that a declining population leads to a decrease in the number of those engaged in knowledge production, resulting in an end to economic growth.14 Further research about the effects of a declining population on economic growth is still necessary.
They also suggest that as capital rushed out of Asia, countries like Taiwan and others still had sound fundamentals - budget surpluses, low inflation, high savings rates. Some critics also maintain that the IMF’s actions made a bad situation worse.