What happens when babyboomers retire? Have we saved enough for retirement or are we living beyond our means? Academics argue high savings by prime-aged babyboomers in their 'summer' have depressed real interest rates in recent decades. But the community is split as to what happens next as 'winter' comes.
With the Fed and ECB unwinding QE, what happens when we come off the meds? There are signs that the patient (the economy) has healed, suggesting limited withdrawal effects. While addiction and placebo effects could still increase risk premia, low inflation reduces the risk of going ‘cold turkey’.