Intro -- Contents -- I. INTRODUCTION -- II. TRENDS IN FINANCIAL DOLLARIZATION -- III. FINANCIAL DOLLARIZATION AS A RATIONAL RESPONSE TO INFLATION -- IV. THE ROLE OF CREDIT RISK -- V. CONCLUDING REMARKS -- APPENDIX I -- APPENDIX II -- REFERENCES.

This paper analyzes various reform options for Japan's public pension in light of large fiscal consolidation needs of the country. The most attractive option is to increase the pension eligibility age in line with high and rising life expectancy. This would have a positive effect on long-run...