Psychologists say that the human brain suffers from dozens of different biases, perhaps one of the most important of these being “recency bias”. We tend to project the past into the future.

While there are short-term fluctuations in interest rates caused by economic circumstances and central bank policies, there are also long-term structural trends affecting interest rates. This article will look in greater detail and one of the most important of these, namely demographics.

Many believe that demographics is at most remotely related to economics. If you are one of these, perhaps by the time you finish reading this article, you will be convinced how fundamentally demographics underpins economics.