This paper develops an overlapping generations model to evaluate, first, the steady state growthmaximizing level of public debt around which the economy needs to stabilise; second, how the optimal level of public debt varies as a function of key population parameters; third, how fiscal rules designed to stabilise the economy around that debt level need to vary with the population parameters; and, fourth, how the model performs as a reasonable and plausible representation of the economies that we might be concerned with. Finally, following the diminished fiscal space and flexibility that is created by deteriorating population parameters, some political economy perspectives are offered.
|Titel||49th Annual Monetary Studies Conference : Repositioning Small States for New Global Realities: Book of Abstracts|
|Forlag||The University of the West Indies|
|Status||Udgivet - 2017|
|Begivenhed||The 49th Annual Monetary Studies Conference - Radisson Fort George Hotel and Marina, Belize City, Belize|
Varighed: 8 nov. 2017 → 10 nov. 2017
Konferencens nummer: 49
|Konference||The 49th Annual Monetary Studies Conference|
|Lokation||Radisson Fort George Hotel and Marina|
|Periode||08/11/2017 → 10/11/2017|
- Fiscal rules
- Public debt
- Economic growth
- Demographic changes
Hallett, A. H., Hougaard Jensen, S. E., Vieira, F., & Sveinsson, T. S. (2017). Sustainable Fiscal Strategies under Changing Demographics: A Political Economy Perspective. I 49th Annual Monetary Studies Conference: Repositioning Small States for New Global Realities: Book of Abstracts (s. 23). Kingston: The University of the West Indies.