01907cas a2200265 a 4500 AALejournalIMF014613 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498392129 1018-5941 BD-DhAAL BD-DhAAL Anderson, Derek. Is Japan's Population Aging Deflationary? / Derek Anderson, Dennis Botman, Benjamin Hunt. Washington, D.C. : International Monetary Fund, 2014. 1 online resource (23 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 Japan has the most rapidly aging population in the world. This affects growth and fiscal sustainability, but the potential impact on inflation has been studied less. We use the IMF's Global Integrated Fiscal and Monetary Model (GIMF) and find substantial deflationary pressures from aging, mainly from declining growth and falling land prices. Dissaving by the elderly makes matters worse as it leads to real exchange rate appreciation from the repatriation of foreign assets. The deflationary effects from aging are magnified by the large fiscal consolidation need. Many of these factors will beset other advanced countries as well, but we find that deflation risk from aging is not inevitable as ambitious structural reforms and an aggressive monetary policy reaction can provide the offset. Mode of access: Internet Botman, Dennis. Hunt, Benjamin. IMF Working Papers; Working Paper ; No. 2014/139 Full text available on IMF http://elibrary.imf.org/view/journals/001/2014/139/001.2014.issue-139-en.xml IMF e-Library