Luxembourg : Selected Issues.

Format:

Book

Government document

Author/Creator:

International Monetary Fund. European Dept.

Series:

IMF Staff Country Reports; Country Report ; No. 2019/131

IMF Staff Country Reports

Language:

English

Subjects (All):

Fiscal policy.

Fiscal policy--Luxembourg.

Physical Description:

1 online resource (16 pages)

Place of Publication:

Washington, D.C. : International Monetary Fund, 2019.

Summary:

This Selected Issues paper studies the fiscal and macroeconomic impact of different reform options. It analyzes the impact of an increase in the contribution rate, a reduction of benefits, and an increase in the retirement age. Although all reform options can lead to the fiscal sustainability of the system, there are important macroeconomic trade-offs among them. Although the Luxembourg’s pension system is sound over the near term, further reforms are needed to ensure its long-term sustainability. This paper explored the fiscal and macroeconomic impact of several reform options: an increase in the contribution rate, a reduction of benefits, and an increase in the retirement age. Although all these reforms would help ensuring fiscal long-term sustainability, there are important macroeconomic trade-offs. Even though an increase in contribution rates can be implemented immediately, it introduces distortions in the labor market which lead to a decline in GDP in addition to a decline in consumption.

Notes:

Description based on print version record.

ISBN:

9781498314596

1498314597

9781498314657

1498314651