01737cas a2200241 a 4500 AALejournalIMF001352 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451858495 1018-5941 BD-DhAAL BD-DhAAL Schimmelpfennig, Axel. Pension Reform, Private Saving, and the Current Account in a Small Open Economy / Axel Schimmelpfennig. Washington, D.C. : International Monetary Fund, 2000. 1 online resource (30 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The macroeconomic implications of a pension reform that substitutes a high-return fully-funded system for a low-return pay-as-you-go system are discussed in an overlapping generations, neoclassical growth model. With forward-looking individuals, a debt-financed reform worsens the current account, while a tax-financed reform leaves the current account unchanged. With myopic individuals, a debt-financed reform leaves the current account unchanged, while a tax-financed reform improves the current account. Hence, tax-financing, which is equivalent to pre-funding, should be the preferred reform strategy in a small open economy with a weak current account position. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2000/171 Full text available on IMF http://elibrary.imf.org/view/journals/001/2000/171/001.2000.issue-171-en.xml IMF e-Library