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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 07/196.
Date of creation: 01 Aug 2007
Date of revision:
Contact details of provider:
Postal: International Monetary Fund, Washington, DC USA
Phone: (202) 623-7000
Fax: (202) 623-4661
Web page: http://www.imf.org/external/pubind.htm
More information through EDIRC
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)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Robert Ford & Douglas Laxton, 1995.
"World Public Debt and Real Interest Rates,"
IMF Working Papers
95/30, International Monetary Fund.
- Ganelli, Giovanni, 2005.
"The new open economy macroeconomics of government debt,"
Journal of International Economics,
Elsevier, vol. 65(1), pages 167-184, January.
- Giovanni Ganelli, 2002. "The New Open Economy Macroeconomics of Government Debt," Trinity Economics Papers 200214, Trinity College Dublin, Department of Economics.
- Ganelli, Giovanni, 2003. "The New Open Economy Macroeconomics of Government Debt," Royal Economic Society Annual Conference 2003 83, Royal Economic Society.
- Ghironi, Fabio & Iscan, Talan B. & Rebucci, Alessandro, 2008.
"Net foreign asset positions and consumption dynamics in the international economy,"
Journal of International Money and Finance,
Elsevier, vol. 27(8), pages 1337-1359, December.
- International Monetary Fund, 2005. "Net Foreign Asset Positions and Consumption Dynamics in the International Economy," IMF Working Papers 05/82, International Monetary Fund.
- Nicoletta Batini & Alessandro Rebucci & Papa M'B. P. N'Diaye, 2005.
"The Domestic and Global Impact of Japan's Policies for Growth,"
IMF Working Papers
05/209, International Monetary Fund.
- Nicoletta Batini & Papa N'Diaye & Alessandro Rebucci, 2005. "The domestic and global impact of Japan’s policies for growth," Proceedings, Federal Reserve Bank of San Francisco.
- Michiel Evers & Ruud A. De Mooij & Daniel J. Van Vuuren, 2005.
"What Explains the Variation in Estimates of Labour Supply Elasticities?,"
CESifo Working Paper Series
1633, CESifo Group Munich.
- Michiel Evers & Ruud de Mooij & Daniel van Vuuren, 2005. "What explains the variation in estimates of labour supply elasticities?," CPB Discussion Paper 51, CPB Netherlands Bureau for Economic Policy Analysis.
- Caselli, Paola, 2001. "Fiscal consolidation under fixed exchange rates," European Economic Review, Elsevier, vol. 45(3), pages 425-450, March.
- Maurice Obstfeld and Kenneth Rogoff., 1995.
"Exchange Rate Dynamics Redux,"
Center for International and Development Economics Research (CIDER) Working Papers
C95-048, University of California at Berkeley.
- Michiel Evers & Ruud A. de Mooij & Daniel J. van Vuuren, 2006. "What explains the Variation in Estimates of Labour Supply Elasticities?," Tinbergen Institute Discussion Papers 06-017/3, Tinbergen Institute.
- Martin Werding & Anita Kaltschütz, 2005. "Modellrechnungen zur langfristigen Tragfähigkeit der öffentlichen Finanzen," ifo Beiträge zur Wirtschaftsforschung, Ifo Institute for Economic Research at the University of Munich, number 17, March.
- M. Ishaq Nadiri, 1993. "Innovations and Technological Spillovers," NBER Working Papers 4423, National Bureau of Economic Research, Inc.
- Erik Canton & Bert Minne & Ate Nieuwenhuis & Bert Smid & Marc van der Steeg, 2005. "Human capital, R&D, and competition in macroeconomic analysis," CPB Document 91, CPB Netherlands Bureau for Economic Policy Analysis.
- Laxton, Douglas & Pesenti, Paolo, 2003.
"Monetary rules for small, open, emerging economies,"
Journal of Monetary Economics,
Elsevier, vol. 50(5), pages 1109-1146, July.
- Douglas Laxton & Paolo Pesenti, 2003. "Monetary Rules for Small, Open, Emerging Economies," NBER Working Papers 9568, National Bureau of Economic Research, Inc.
- Ganelli, Giovanni, 2003.
"Useful government spending, direct crowding-out and fiscal policy interdependence,"
Journal of International Money and Finance,
Elsevier, vol. 22(1), pages 87-103, February.
- Ganelli, G., 2000. "Useful Government Spending, Direct Crowding Out and Fiscal Policy Interdependence," The Warwick Economics Research Paper Series (TWERPS) 547, University of Warwick, Department of Economics.
- Helge Berger & Stephan Danninger, 2005. "Labor and Product Market Deregulation: Partial, Sequential, or Simultaneous Reform?," IMF Working Papers 05/227, International Monetary Fund.
- Maurice Obstfeld & Kenneth S. Rogoff, 1996. "Foundations of International Macroeconomics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262150476, June.
- Dennis P. J. Botman & Stephan Danninger, 2007. "Tax Reform and Debt Sustainability in Germany: An Assessment Using the Global Fiscal Model," IMF Working Papers 07/46, International Monetary Fund.
- Dennis P. J. Botman & Anita Tuladhar, 2008. "Tax and Pension Reform in the Czech Republic-Implications for Growth and Debt Sustainability," IMF Working Papers 08/125, International Monetary Fund.
- Dora M. Iakova & Dennis P. J. Botman, 2007. "Policy Challenges of Population Aging in Ireland," IMF Working Papers 07/247, International Monetary Fund.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jim Beardow) or (Hassan Zaidi).
If references are entirely missing, you can add them using this form.