ABSTRACT
In previous chapters, we have focused on two major transitions in the 1990s: the transition from central planning and communism to market capitalism and the global integration of national financial systems. We have argued that failure of economic theory to fully understand these transitions has led to bad policies that made the transitions unnecessarily painful and costly. Yet another major transition has received attention in the 1990s: the demographic transition of the advanced economies from youth-dominated to senior-dominated societies.
