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Intense policy and academic interest in the 'economics of ageing' has come about as a result of the demographic trends that have been experienced over the last 50 years and that are projected for the next 50 years. Key economic policy issues relate to the design of public pensions, welfare systems, healthcare and invalidity benefits, and the regulation of private pensions and other retirement saving. This paper presents an overview of the beginnings of a research agenda targeted towards increasing the empirical evidence on these issues in England and providing extensive data for subsequent research. The paper focuses on summarising some recent data on how individuals' economic circumstances, and in particular the ability and willingness to work, change from age 50 onwards. This will be a key factor in determining the ability of economic institutions to adjust to new socio-demographic equilibria in which individuals are living for longer. Further issues for more extensive empirical research are also identified.

A baseline general equilibrium model of optimal monetary policy among interdependent economies with monopolistic firms and nominal rigidities is presented.

A dynamic general equilibrium model in order to compare the effects of different types of redistributive policies such as money transfers and educational transfers in terms of efficiency and equity is presented.

Among the majority of high-income OECD countries, the degree of fiscal decentralisation has converged over the last 30 years towards an intermediate level. The theoretical arguments for and against fiscal decentralisation point to explanations for this tendency, because both extreme decentralisation and extreme centralisation are associated with disadvantages for economic growth. Hence, the observed trend of convergence would be growth-promoting. The paper analyses the long-run empirical relationship between per capita economic growth, capital formation and total factor productivity growth, and fiscal decentralisation for the high-income OECD countries. The evidence supports the view that the relationship is positive when fiscal decentralisation is increasing from low levels, but then reaches a peak and turns negative. A policy implication is that policy-makers in several countries with relatively low degrees of fiscal decentralisation could possibly mobilise growth reserves by increasing it. JEL classification: C33, H77, 047.

Byline: David E. Wildasin (1) Author Affiliation: (1) Department of Economics, Vanderbilt University, Nashville, TN, 37235, U.S.A Article History: Registration Date: 30/09/2004

A mathematical model was developed to find the basis of the decision by the Federal Reserve's Open Market Committee (FOMC) to tighten its monetary policy in 1994. OLS regressions and Vector Auto Regressive modeling were performed on data representing various economic indicators. Results of the modeling showed the FOMC's decision to tighten its monetary policy was based on an anticipated incidence of inflation rather than on an actual condition of inflation.

IN THE HABIT-PERSISTENCE MODEL of Ryder and Heal (1973) instantaneous utility depends on both current consumption and the habitual standard of living, represented by a weighted average of past levels [...]

ALTHOUGH GOVERNMENTS AND THE PUBLIC dislike inflation, it is difficult to reduce it. Moreover, many countries that have succeeded in reducing inflation have done it slowly, despite the authorities' commitment [...]

A study was conducted on stabilization plans which seek to lower inflation rates through the exchange rate, with emphasis on their interest rate aspects. A model was developed representing interest rate and portfolio determination when real currrency devaluation is imminent and considering account risk aversion among investors. Using monthly data from the period 1979-1980, it was found that the net monthly interest rate arbitrage return for Argentina was negatively associated with a 'safety factor' and the aggregate change in trade balance.

An analysis of the effects on aggregate change factors in government consumption is presented. The analysis is based on an application of the neoclassical stochastic growth model. Theory implies a greater impact on outputand employment of persistent change in government consumption compared to temporary variations. In addition, an analog variation of the Keynesian multiplier can be derived.

The advantages of monetary policy rules that use the growth rate level of aggregate measures of nominal spending rather than a monetary aggregate as principal target variable was investigated. The case for nominal income targeting (NIT) was reviewed including evidence indicating the use of NIT in the US. The study aims to create desirable results from the use of NIT in the context of a quantitative macroeconomic model.

An analysis of international experiences with various monetary policy regimes, namely, monetary targeting, exchange-rate targeting, implicit monetary policy and inflation targeting, indicate that accountability and transparency are imperative in producing desirable results. This is so because challenges usually occur in the way transparency and accountability are achieved. History, political, cultural and economic traditions determine the kind of monetary policy strategy that would suit a certain country.

A smooth transition analysis was conducted to study the speed and timing of the disinflation reforms implemented by Australia, Canada, and New Zealand. The alternative approach, which allows price data to determine the process of transition, pointed to central bank independence and the general downturn in the economy in the early 1990s as the major factors in the transition. Other labor market and fiscal policy changes were considered to have less impact since the transitions were already occurring before these alterations were made.