Second, by increasing competition with domestic investments, the development of the Maple Bond market has led to pricing of other domestic corporate bonds that better reflects fundamentals. This improved pricing of risk benefits the Canadian financial system as a whole. Third, the development of the Maple Bond market has helped to increase trading and narrow spreads in the Canadian-dollar swap market.
Alternatively, the current generation could consume less and save more, which would allow the consumption of future generations to be closer to what it would have been in the absence of population aging. How big are these effects?