Calculating the cost: the consequences of excessive optimism in projections of economic growth

David Kingman argues that current assessments for spending on the aged as a percentage of GDP are flawed, and unfair to future generations. The cost of future liabilities is often expressed as a percentage of Gross Domestic Product (GDP), i.e. how much of the country’s economic output they are projected to be worth. However, this… Read more »

Inflation and its intergenerational impact

Angus Hanton looks at the pros and cons of rising inflation, and its effects on interest rates Inflation is now running at about 5% pa, with interest rates standing at below 1%. The result is that, when you take account of inflation, real interest rates are negative, so that savers are seeing their savings reduced… Read more »

Intergenerational issues in Japan

  David Kingman describes the fallout from a swelling elderly population Japan is the world’s fastest ageing country, making it a good case-study for the type of intergenerational issues that could emerge in Britain as our own population gets older.

Does the increase in pension contributions for government workers matter intergenerationally?

Angus Hanton looks at the proposals for meeting the gaping liabilities in public-service pensions In the UK we are saving too little, according to the experts such as Martin Weale of the Bank of England. This ties up with personal observations: people expect to live longer, they expect to spend more, and they retire at… Read more »