Arbeitspapier
How does population aging affect the effectiveness of monetary and fiscal policies?
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.
- Language
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Englisch
- Bibliographic citation
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Series: ADBI Working Paper Series ; No. 1064
- Classification
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Wirtschaft
Monetary Policy
Fiscal Policy
Demographic Economics: General
- Subject
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population aging
monetary policy
fiscal policy
DSGE
fiscal multipliers
- Event
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Geistige Schöpfung
- (who)
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Yoshino, Naoyuki
Miyamoto, Hiroaki
- Event
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Veröffentlichung
- (who)
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Asian Development Bank Institute (ADBI)
- (where)
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Tokyo
- (when)
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2019
- Handle
- Last update
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10.03.2025, 11:42 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Yoshino, Naoyuki
- Miyamoto, Hiroaki
- Asian Development Bank Institute (ADBI)
Time of origin
- 2019
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