02223cas a2200337 a 4500 AALejournalIMF021631 230101c9999 xx r poo 0 0eng d 18.00 USD 9781513573335 1018-5941 BD-DhAAL BD-DhAAL Koshima, Yugo. The Cost of Future Policy : Intertemporal Public Sector Balance Sheets in the G7 / Yugo Koshima, Jason Harris, Alexander Tieman, Alessandro De Sanctis. Washington, D.C. : International Monetary Fund, 2021. 1 online resource (48 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 This paper compiles the Intertemporal Public Sector Balance Sheets for all G7 countries and examines their relationship with government borrowing costs. In 2018, all G7 countries have negative Intertemporal Net Financial Worth (INFW), falling short of their intertemporal budget constraint. A decomposition of the evolution of INFW shows that short-term fluctuations are mainly driven by fiscal policy changes, while in the long run demographic changes and health and pension obligations play a larger role. We find that on average a 10 percentage point of GDP increase in INFW reduces the (future) 10-1 year sovereign yield curve spread by 2.8 basis points. This results suggest that financial markets pay attention to governments' future policy obligations, in addition to its current assets and liabilities. Mode of access: Internet Fiscal Policy imf Foreign Exchange imf Informal Economy imf Public Administration imf Underground Econom imf De Sanctis, Alessandro. Harris, Jason. Tieman, Alexander. IMF Working Papers; Working Paper ; No. 2021/128 Full text available on IMF http://elibrary.imf.org/view/journals/001/2021/128/001.2021.issue-128-en.xml IMF e-Library