4  See Nishimura, K. G. and E. Takáts, “Ageing, Property Prices and Money Demand” (work in progress), which has both theory and empirical analysis of a panel of 22 advanced economies. 4  BIS central bankers’ speeches  population. Let me offer two examples: reduced flexibility or mobility in the economy, and more acute balance-sheet adjustments.
In contrast, despite the substantial destruction of wealth reflected in the decline in equity prices, households, encouraged by ongoing increases in income and housing wealth, have maintained their expenditures. Low mortgage rates encouraged households to purchase both new and existing homes, the latter enabling sellers to extract large amounts of home equity, previously enhanced by capital gains.