01804cas a2200253 a 4500 AALejournalIMF015800 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513509082 1018-5941 BD-DhAAL BD-DhAAL Baksa, Daniel. More Gray, More Volatile? : Aging and (Optimal) Monetary Policy / Daniel Baksa, Zsuzsa Munkacsi. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (46 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 evidence on the inflation impact of aging is mixed, and there is no evidence regarding the volatility of inflation. Based on advanced economies' data and a DSGE-OLG model, we find that aging leads to downward pressure on inflation and higher inflation volatility. Our paper is also the first, using this framework, to discuss how aging affects the transmission channels of monetary policy. We are also the first to examine aging and optimal central bank policies. As aging redistributes wealth among generations and the labor force becomes more scarce, our model suggests that aging makes monetary policy less effective and in more gray societies central banks should react more strongly to nominal variables. Mode of access: Internet Munkacsi, Zsuzsa. IMF Working Papers; Working Paper ; No. 2019/198 Full text available on IMF http://elibrary.imf.org/view/journals/001/2019/198/001.2019.issue-198-en.xml IMF e-Library