Aging in a Currency Union with Endogenous Growth
نویسنده
چکیده
This paper considers the effects of aging in a currency union with endogenous growth. It is shown that mortality, labour supply and social security funding have no effect on inflation and pose therefore no problems for monetary integration. On the other hand, the demand for medical care speeds up inflation. Hence, if a currency union accepts a new member in which families have a relatively high need for medical care, its inflation rate will increase, but the growth rate and welfare will decrease everywhere in the enlarged union. There exists a growthmaximizing level for social security funding. The extension of funding beyond this level retards growth and welfare. Journal of Economic Literature: O41, E31, J14
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تاریخ انتشار 2004