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Money and Pay-As-You-Go Pension

Author

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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, Open Access Journal, 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, 2019. "Fertility, Inequality and Income Growth," Discussion Paper Series 187, School of Economics, Kwansei Gakuin University.
    2. Masaya Yasuoka, 2018. "Fertility, Income Growth and Inflation," Discussion Paper Series 182, School of Economics, Kwansei Gakuin University, revised Jul 2018.

    More about this item

    Keywords

    income growth; pay-as-you-go pension; monetary policy; fewer children;

    JEL classification:

    • E - Macroeconomics and Monetary Economics
    • F - International Economics
    • I - Health, Education, and Welfare
    • J - Labor and Demographic Economics
    • O - Economic Development, Innovation, Technological Change, and Growth
    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics

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