Börsch-Supan, A., D. Krueger and A. Ludwig (2007), “Demographic Change, Relative Factor Prices, International Capital Flows, and Their Differential Effects on the Welfare of Generations”, NBER Working Paper 13185. Börsch-Supan, A., A. Ludwig, and J. Winter (2004), “Aging, Pension Reform, and Capital Flows: A Multi-Country Simulation Model”, Sonderforschungsbereich 504, Discussion Paper 04-61, University of Mannheim.
Against this background, the Federal Reserve, or the central bank of the United States, decided on a reduction of its target interest rate by 0.5 percentage points at an unscheduled meeting of the FOMC at the beginning of the year, followed by an additional reduction of 0.5 percentage points at the end of January 2001.