And yet, mainstream economic theory would have us believe that lower interest rates stimulate demand across all economies at all times in history.
(Warning: rhetorical question iminent)
So how, dear reader, does extremely low interest rates effect this demographic, and what are the ramifications to demand from this sudden decrease in current and projected future income among this class?
Lower rates decrease present and future cash flows for net savers of financial assets. This is something that has not been addressed by the Monetarist/Rational Expectations crowd.