Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/222831
Authors: 
Yoshino, Naoyuki
Miyamoto, Hiroaki
Year of Publication: 
2019
Series/Report no.: 
ADBI Working Paper Series No. 1064
Abstract: 
This paper studies how population aging affects macroeconomic performance and the effectiveness of macroeconomic policies. By using a new Keynesian dynamic stochastic general equilibrium model with heterogeneous households, we find that the effectiveness of monetary policy diminishes as population aging proceeds. We then examine how population aging modifies the fiscal policy effect by estimating fiscal multipliers in both aging and non-aging economies. We find that population aging weakens the effectiveness of fiscal stimulus. Our analyses suggest that neither monetary policy nor fiscal policy would be effective in aging economies, and structural reform measures would have a more important role.
Subjects: 
population aging
monetary policy
fiscal policy
DSGE
fiscal multipliers
JEL: 
E52
E62
J10
Creative Commons License: 
https://creativecommons.org/licenses/by-nc-nd/3.0/igo/
Document Type: 
Working Paper

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