Demography and business cycles As I mentioned at the outset, the third lens suggests that boom-bust cycles and demographic changes could interact with each other. For example, the spending wave hypothesis suggests a possible linkage between the two.
This simple-looking hypothesis argues that peaks of business cycle and asset market booms tend to coincide with the years for baby boomers passing their peak spending years, presuming that their consumption reaches its highest for their ages in their late forties.