IMF Staff Country Reports

Czech Republic: Selected Issues

Publication Date:

August 8, 2005

Electronic Access:

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Summary:

This Selected Issues paper on the Czech Republic presents an analysis of various aspects of population aging: its macroeconomic effects; impact on fiscal sustainability; and implications for private savings. The paper simulates the macroeconomic effects of population aging in the Czech Republic using an overlapping-generations model. It finds that aging can significantly weaken the outlook for economic growth and living standards. The paper evaluates the fiscal implications of aging using a generational-accounting framework. It also evaluates the monetary policy implications of capital account volatility—as the relative importance of portfolio flows increases.

Series:

Country Report No. 2005/275

Subject:

Aging Expenditure Financial statements Health care spending Pension spending Population and demographics Production Productivity Public financial management (PFM)