This correlation was clearly evident during the “taper tantrum” when the 10-year US Treasury yield increased from 1,63 to almost 3,0 per cent and the South African 10-year benchmark bond increased from 6,58 to almost 8,0 per cent between May and August 2013.
Hopefully you have gained the impression that Japan's economy has continued to grow after the "lost two decades." Women and seniors' labor participation as well as firms' initiatives to increase labor-saving investment have offset the negative impact of the declining population. However, the declining and aging population will continue to weigh on Japan's economy.