A similar situation holds true in the pre-globalization period, where the price of PSV assets is about 5.90 units of consumption goods. Consequently, the asset price inflation rate in the pre-globalization period is 0.89% per annum. Then, consider globalization. The Emerging area (that is, Russia and China) is incorporated into the market-economy world in the globalization period (Period 3).
I assume throughout a fixed exchange rate between the Developed area and the Emerging one. Thus, there is one free worldwide market of consumption goods traded for PSV assets. Like the Young in the Developed area, the Young in the Emerging area produce one unit of consumption goods, and sell it to the Old to obtain PSV assets for their retirement.