Shock from Graying: Is the Demographic Shift Weakening Monetary Policy Effectiveness
About: This article is published in Cfa Digest.The article was published on 2015-10-01. It has received 6 citations till now. The article focuses on the topics: Shock (economics) & Monetary policy.
Citations
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TL;DR: It is found that the size of the social network constituted the critical factor in the association between ICT use and social participation, and social isolation mediates the relationship between the ICTUse and socialparticipation.
Abstract: Researchers have identified social participation for the elderly as a salient activity that benefits their wellbeing. Along that vein, prior studies have reported that ICT use increases the extent to which the elderly participate socially with one another. However, the literature remains silent on the mechanisms by which ICT use leads to social participation. In this paper, we draw on two prominent IS theories, actor-network theory (ANT) and activity theory (AT), to develop a conceptual framework by incorporating four social participation-oriented factors: ICT use, social participation, social isolation, and loneliness. We used a quantitative approach based on the cross-sectional survey to collect data from 240 elderly people. We analyzed the data using structural equation modeling based on SmartPLS 3.0. We found that the size of the social network constituted the critical factor in the association between ICT use and social participation. The outcome of the model suggests that ICT use does not impact the social participation directly. Rather, social isolation (absence of social network) mediates the relationship between the ICT use and social participation. Additionally, loneliness, one of the commonly observed psychological states in the elderly, weakens the influence of ICT use on social isolation. Our research advances our theoretical understanding about social participation among seniors and helps governments and businesses prepare ICT plans for the elderly appropriately.
15 citations
TL;DR: In this paper, the authors investigated the regional impact of monetary policy shocks in Poland using Bayesian vector autoregressive approach, and estimated the regional responses to monetary policy policy shocks.
Abstract: This article investigates the regional impact of monetary policy shocks in Poland. Regional responses to monetary policy shocks are estimated using Bayesian vector autoregressive approach, ...
7 citations
Cites background from "Shock from Graying: Is the Demograp..."
...Francis, Owyang, and Sekhposyan (2009) and Imam (2013) show how demography influences the effectiveness of monetary policy....
[...]
Posted Content•
01 Jan 2017
TL;DR: Demographic change can influence the underlying growth rate of the economy, structural productivity growth, living standards, savings rates, consumption, and investment; it can influence long-run unemployment rate and equilibrium interest rate, housing market trends, and the demand for financial assets.
Abstract: As the economy has moved from financial crisis and the Great Recession to sustainable expansion, attention has shifted from cyclical aspects of the economy to structural factors. As policy has begun to normalize, the question has been raised: ?what is normal?? To answer such a question, we need to understand how the underlying fundamentals of the economy are evolving. A critical factor is demographics. Demographic change can influence the underlying growth rate of the economy, structural productivity growth, living standards, savings rates, consumption, and investment; it can influence the long-run unemployment rate and equilibrium interest rate, housing market trends, and the demand for financial assets. Moreover, differences in demographic trends across countries can be expected to influence current account balances and exchange rates. So to understand the global economy, it helps to understand changing demographics and the challenges they pose for monetary and fiscal policymakers.
7 citations
30 Dec 2019
TL;DR: In this paper, the authors studied how population aging affects macroeconomic performance and the effectiveness of macroeconomic policies and found that neither monetary policy nor fiscal policy would be effective in aging economies and structural reform measures would have a more important role.
Abstract: This paper studies how population aging affects macroeconomic performance and the effectiveness of macroeconomic policies. By using a new Keynesian dynamic stochastic general equilibrium model with heterogeneous households, we find that the effectiveness of monetary policy diminishes as population aging proceeds. We then examine how population aging modifies the fiscal policy effect by estimating fiscal multipliers in both aging and nonaging economies. We find that population aging weakens the effectiveness of fiscal stimulus. Our analyses suggest that neither monetary policy nor fiscal policy would be effective in aging economies, and structural reform measures would have a more important role.
3 citations
Cites background from "Shock from Graying: Is the Demograp..."
...Imam (2013) and Wong (2019) also point out that population aging would reduce the effects of monetary policy on inflation and output....
[...]
Posted Content•
TL;DR: Harker as mentioned in this paper said new economic policies are needed to combat the nation's persistently declining labor force participation rate, Federal Reserve Bank of Philadelphia President Patrick T. Harker.
Abstract: New economic policies are needed to combat the nation’s persistently declining labor force participation rate, Federal Reserve Bank of Philadelphia President Patrick T. Harker said today in a speech to the World Affairs Council of Philadelphia. President Harker said the U.S. labor market is strong, but the participation rate is waning.
1 citations
References
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Journal Article•
TL;DR: Loretta J Mester, President and Chief Executive Officer, Federal Reserve Bank of Cleveland-Cato Institut's 35th Annual Monetary Conference: The Future of Monetary Policy-Washington, DC-November 16, 2017 as mentioned in this paper
Abstract: Loretta J Mester, President and Chief Executive Officer, Federal Reserve Bank of Cleveland-Cato Institut's 35th Annual Monetary Conference: The Future of Monetary Policy-Washington, DC-November 16, 2017
17 citations
TL;DR: It is found that the size of the social network constituted the critical factor in the association between ICT use and social participation, and social isolation mediates the relationship between the ICTUse and socialparticipation.
Abstract: Researchers have identified social participation for the elderly as a salient activity that benefits their wellbeing. Along that vein, prior studies have reported that ICT use increases the extent to which the elderly participate socially with one another. However, the literature remains silent on the mechanisms by which ICT use leads to social participation. In this paper, we draw on two prominent IS theories, actor-network theory (ANT) and activity theory (AT), to develop a conceptual framework by incorporating four social participation-oriented factors: ICT use, social participation, social isolation, and loneliness. We used a quantitative approach based on the cross-sectional survey to collect data from 240 elderly people. We analyzed the data using structural equation modeling based on SmartPLS 3.0. We found that the size of the social network constituted the critical factor in the association between ICT use and social participation. The outcome of the model suggests that ICT use does not impact the social participation directly. Rather, social isolation (absence of social network) mediates the relationship between the ICT use and social participation. Additionally, loneliness, one of the commonly observed psychological states in the elderly, weakens the influence of ICT use on social isolation. Our research advances our theoretical understanding about social participation among seniors and helps governments and businesses prepare ICT plans for the elderly appropriately.
15 citations
TL;DR: In this paper, the authors investigated the regional impact of monetary policy shocks in Poland using Bayesian vector autoregressive approach, and estimated the regional responses to monetary policy policy shocks.
Abstract: This article investigates the regional impact of monetary policy shocks in Poland. Regional responses to monetary policy shocks are estimated using Bayesian vector autoregressive approach, ...
7 citations
30 Dec 2019
TL;DR: In this paper, the authors studied how population aging affects macroeconomic performance and the effectiveness of macroeconomic policies and found that neither monetary policy nor fiscal policy would be effective in aging economies and structural reform measures would have a more important role.
Abstract: This paper studies how population aging affects macroeconomic performance and the effectiveness of macroeconomic policies. By using a new Keynesian dynamic stochastic general equilibrium model with heterogeneous households, we find that the effectiveness of monetary policy diminishes as population aging proceeds. We then examine how population aging modifies the fiscal policy effect by estimating fiscal multipliers in both aging and nonaging economies. We find that population aging weakens the effectiveness of fiscal stimulus. Our analyses suggest that neither monetary policy nor fiscal policy would be effective in aging economies, and structural reform measures would have a more important role.
3 citations
Posted Content•
TL;DR: Harker as mentioned in this paper said new economic policies are needed to combat the nation's persistently declining labor force participation rate, Federal Reserve Bank of Philadelphia President Patrick T. Harker.
Abstract: New economic policies are needed to combat the nation’s persistently declining labor force participation rate, Federal Reserve Bank of Philadelphia President Patrick T. Harker said today in a speech to the World Affairs Council of Philadelphia. President Harker said the U.S. labor market is strong, but the participation rate is waning.
1 citations