tailieunhanh - Working PaPer SerieS no 1273 / DeCeMBer 2010: intereSt rate effeCtS of DeMograPhiC ChangeS in a neW-keyneSian life-CyCle fraMeWork

The smooth functioning of the money market depends critically on brokers and dealers, who play a key role in marketing new issues of money market instruments and in providing secondary markets where outstanding issues can be sold prior to maturity. Dealers use RPs to finance their inventories of securities. Dealers also act as intermediaries between other participants in the RP market by making loans to those wishing to borrow in the market and borrowing from those wishing to lend in the market. Brokers match buyers and sellers of money market instruments on. | EUROPEAN CENTRAL BANK EUROSYSTEM WORKING PAPER SERIES NO 1273 I DECEMBER 2010 INTEREST RATE EFFECTS OF DEMOGRAPHIC CHANGES IN A NEW-KEYNESIAN LIFE-CYCLE FRAMEWORK by Engin Kara and Leopold von Thadden EUROPEAN CENTRAL BANK EUROSYSTEM WORKING PAPER SERIES NO 1273 I DECEMBER 2010 INTEREST RATE EFFECTS OF DEMOGRAPHIC CHANGES IN A NEW-KEYNESIAN LIFE-CYCLE FRAMEWORK 1 by Engin Kara2 and Leopold von Thadden3 In 2010 all ECB publications feature a motif taken from the 500 banknote. NOTE This Working Paper should not be reported as representing the views of the European Central Bank ECB . The views expressed are those of the authors and do not necessarily reflect those of the ECB. This paper can be downloaded without charge from http or from the Social Science Research Network electronic library at http abstract_id 1716845. We would like to thank Neil Rankin Massimo Rostagno Jean-Pierre Vidal and seminar participants at Bristol the ECB the European Economic Association Meeting Milan 2008 the North American Summer Meeting of the Econometric Society Pittsburgh 2008 and the Meeting of the German Economic Association Muenchen 2007 for their comments. Part of this paper was completed while Engin Kara was visiting the Monetary Policy Strategy Division at the European Central Bank and he thanks the ECB for its hospitality. 2 Economics Department University of Bristol 8 Woodland Road BS8 ITN Bristol email 3 European Central Bank Kaiserstrasse 29 D-60311 Frankfurt am Main Germany email European Central Bank 2010 Address Kaiserstrasse 29 60311 Frankfurt am Main Germany Postal address Postfach 16 03 19 60066 Frankfurt am Main Germany Telephone 49 69 1344 0 Internet http Fax 49 69 1344 6000 All rights reserved Any reproduction publication and reprint in the form of a different publication whether printed or produced electronically in whole or in part is permitted only with the .