Decreased Effectiveness of Fiscal and Monetary Policies in Japan's Aging Society
Yoshino, Naoyuki; Miyamoto, Hiroaki | March 2017
抄録
This paper studies how an aging population affects economic performance and the effectiveness of fiscal and monetary policies. We develop a New Keynesian dynamic stochastic general equilibrium model with heterogeneous households, workers, and retirees. We demonstrate that an increase in the proportion of working population increases aggregate output, consumption, and investment by increasing total labor supply in the long run. It also increases wages and reduces social security burden of the government. This paper also finds that effectiveness of fiscal and monetary policies is weakened when the proportion of retirees becomes larger. This is the reason why recent monetary policies cannot recover the Japanese economy from the prolonged stagnation.
Citation
Yoshino, Naoyuki; Miyamoto, Hiroaki. 2017. Decreased Effectiveness of Fiscal and Monetary Policies in Japan's Aging Society. © Asian Development Bank Institute. http://hdl.handle.net/11540/7781.Keywords
Good Governance
Governance Approach
Governance Models
World Health Organization
Quality of Health Care
Public Health Finance
Private Health Care
Healthier Families
Nutrition and Health Care
Health Statistics
Health Objectives
Health Issues
Health Care Cost Control
Political Leadership
Public Administration
Traditional Medicine
Medical Statistics
Medical Services
Medical Costs
Health Costs
Medical Aspects
Child Nutrition
Disease Control
Diseases
Drug Policy
Long Term Care Insurance
Medical Costs
Preventive Medicine
Basic Health
Medical Care
Alcohol policy
Hospices
Aged Health
Civil government
Common good
Federal government
Delivery of government services
Government missions
Taxation
Public health records
Cost of medical care
Nutrition policy
Health status indicators
Elderly Care
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