Global Aging Pressures: Impact of Fiscal Adjustment, Policy Cooperation, and Structural Reforms
AbstractDemographic pressures will materialize in many economies over the next few decades. We examine the macroeconomic impact of alternative fiscal adjustment and structural reform strategies to address these global aging pressures using the IMF's Global Fiscal Model (GFM). The results suggest substantial spillover effects of aging through international financial channels. To maintain sustainability, fiscal adjustment needs to be broad-based, while avoiding increases in direct taxes. There are substantial benefits from fiscal cooperation, while negative growth effects can be offset by complementary structural reforms in product and labor markets with the benefits accruing early and to all incomegroups.
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Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 07/196.
Date of creation: 01 Aug 2007
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This paper has been announced in the following NEP Reports:
- NEP-AGE-2007-09-16 (Economics of Ageing)
- NEP-ALL-2007-09-16 (All new papers)
- NEP-MAC-2007-09-16 (Macroeconomics)
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