This paper identifies policy tools that could be used for fiscal consolidation in advanced and emerging economies in the years ahead. The consolidation strategy, particularly in advanced countries, should aim to stabilize age-related spending in relation to GDP, reduce non-age-related...

Fiscal Affairs Department From Stimulus to Consolidation: Revenue and Expenditure Policies in Advanced and Emerging Economies A Staff Team Led by Benedict Clements, Victoria Perry, and Juan Toro NTERNATIONAL M ...

In this paper, we solve an optimal portfolio choice problem to measure the bene fits of Treasury Inflation Indexed Securities (TIPS) to investors concerned with maximizing real wealth. We show how the introduction of a real riskless asset completes the investor asset space, by contrasting...

In this paper we introduce a cointegrated VAR modelling approach for two-country macro dynamics. In order to tackle the curse of dimensionality resulting from the number of variables in multi-country models, we investigate the applicability of the approach by Aoki (1981) frequently used in...