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Money and Pay-As-You-Go Pension

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  • Masaya Yasuoka

    (School of Economics, Kwansei Gakuin University, Nishinomiya 6628501, Hyogo, Japan)

Abstract

This paper presents examination of how a pension policy affects income growth and the inflation rate in a utility model. Even if the contribution rate of pension increases because of an aging society, an aging society increases income growth and the inflation rate. Moreover, this paper presents examination of the optimal growth rate of the money supply. Because of the pension policy, the optimal growth rate of money stock changes. This result is intuitive because a pay-as-you-go pension changes capital accumulation. Therefore, the income growth rate should be changed to raise the welfare of all generations.

Suggested Citation

  • Masaya Yasuoka, 2018. "Money and Pay-As-You-Go Pension," Economies, MDPI, vol. 6(2), pages 1-15, March.
    • Handle: RePEc:gam:jecomi:v:6:y:2018:i:2:p:21-:d:138573
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    References listed on IDEAS

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    Cited by:

    1. Masaya Shintani & Masaya Yasuoka, 2022. "Fertility, Inequality and Income Growth," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 8(1), pages 29-48, March.
    2. Masaya Yasuoka, 2018. "Fertility, Income Growth and Inflation," Discussion Paper Series 182, School of Economics, Kwansei Gakuin University, revised Jul 2018.

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    More about this item

    Keywords

    income growth; pay-as-you-go pension; monetary policy; fewer children;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • O42 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Monetary Growth Models

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