{
  "title": "Global Aging Pressures: Impact of Fiscal Adjustment, Policy Cooperation, and Structural Reforms",
  "publication": "IMF Working Papers, August 1, 2007",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/global-aging-pressures-impact-of-fiscal-adjustment-policy-cooperation-and-structural-reforms-21230",
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  "summary": "Demographic pressures will materialize in many economies over the next few decades. We examine the macroeconomic impact of alternative fiscal adjustment and structural reform strategies to address these global aging pressures using the IMF's Global Fiscal Model (GFM).",
  "sections": [
    {
      "heading": "Summary",
      "content": "- Demographic pressures will materialize in many economies over the next few decades.\n- The study examines the macroeconomic impact of alternative fiscal adjustment and structural reform strategies to address these global aging pressures using the IMF's Global Fiscal Model (GFM).\n- Results suggest substantial spillover effects of aging through international financial channels.\n- To maintain sustainability, fiscal adjustment needs to be broad-based, while avoiding increases in direct taxes.\n- There are substantial benefits from fiscal cooperation.\n- Negative growth effects can be offset by complementary structural reforms in product and labor markets, with the benefits accruing early and to all income groups."
    },
    {
      "heading": "Key Findings",
      "content": "- Substantial spillover effects of aging occur through international financial channels.\n- Broad-based fiscal adjustment is required to maintain fiscal sustainability.\n- Increasing direct taxes is not recommended as part of fiscal adjustment.\n- Fiscal cooperation across countries yields substantial benefits.\n- Complementary structural reforms in product and labor markets can offset negative growth effects of aging.\n- The benefits from structural reforms accrue early and to all income groups."
    },
    {
      "heading": "Modeling and Scope",
      "content": "- Analytical tool: IMF's Global Fiscal Model (GFM).\n- Subject areas: Aging, Consumption, Fiscal consolidation, Fiscal policy, Labor supply.\n- Keywords highlighted by the study: euro area, government spending, product market, real GDP, real interest rate, WP.\n\n---\n\n Content in this bundle\n\n- wp07196\n  - wp07196 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp07196 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/global-aging-pressures-impact-of-fiscal-adjustment-policy-cooperation-and-structural-reforms-21230"
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    "[Markdown version](/en/publications/wp/issues/2016/12/31/global-aging-pressures-impact-of-fiscal-adjustment-policy-cooperation-and-structural-reforms-21230/index.md)",
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    "Authors: Manmohan S. Kumar, Dennis P Botman",
    "Published: August 1, 2007",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451867602.001",
    "Demographic pressures will materialize in many economies over the next few decades.",
    "The study examines the macroeconomic impact of alternative fiscal adjustment and structural reform strategies to address these global aging pressures using the IMF's Global Fiscal Model (GFM).",
    "Results suggest substantial spillover effects of aging through international financial channels.",
    "To maintain sustainability, fiscal adjustment needs to be broad-based, while avoiding increases in direct taxes.",
    "There are substantial benefits from fiscal cooperation.",
    "Negative growth effects can be offset by complementary structural reforms in product and labor markets, with the benefits accruing early and to all income groups.",
    "Substantial spillover effects of aging occur through international financial channels.",
    "Broad-based fiscal adjustment is required to maintain fiscal sustainability.",
    "Increasing direct taxes is not recommended as part of fiscal adjustment.",
    "Fiscal cooperation across countries yields substantial benefits.",
    "Complementary structural reforms in product and labor markets can offset negative growth effects of aging.",
    "The benefits from structural reforms accrue early and to all income groups.",
    "Analytical tool: IMF's Global Fiscal Model (GFM).",
    "Subject areas: Aging, Consumption, Fiscal consolidation, Fiscal policy, Labor supply.",
    "Keywords highlighted by the study: euro area, government spending, product market, real GDP, real interest rate, WP.",
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