Monetary, fiscal and demographic interactions in Japan: impact and a comparative assessment

Pierre Siklos

Working Papers from HAL

Abstract: Macroeconomic models used to downplay demographic and fiscal factors. For Japan, narratives suggest that its experience is unlike that of other large economies persisted. I revisit how demographic and fiscal shocks impact Japan, the Euro Area and the US since 1990. Several models and methodologies are used to investigate macro-financial factors, including demographic and fiscal variables. Many, but not all, of the shocks examined have comparable impact across all three economies considered. This is true for monetary policy and the response of global inflation to ageing and demographic shocks. The response of real economic activity to several of the shocks considered is also comparable. Perhaps most notably, demographic and fiscal factors have significant real economic impact although the size of the response does differ across the three economies examined. Japan may not be like other systemically important economies in all respects but it does offer lessons for other large economies.

Keywords: Japan; monetary and fiscal policy; Eurozone; USA; demographic and global factors; panel VAR; local projections JEL classifications: E31 (search for similar items in EconPapers)
Date: 2022-07-31
New Economics Papers: this item is included in nep-cba and nep-mon
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03776217
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://shs.hal.science/halshs-03776217/document (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:halshs-03776217

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().