Whilst all of the major industrialized countries are currently experiencing population ageing, Japan is at the forefront of this demographic trend. This important new book explores the serious economic and social challenges that a rapidly ageing Japanese economy will have to overcome in the first half of the 21st century. Following a comprehensive review of the economics of ageing both in general and in Japan, the authors present a range of future scenarios produced using an integrated economic-demographic model. This unique model integrates demography and the macro-economy, paying special attention to pensions, health care, and long-term care. The results reveal that, even if future demographic trends are more favourable than predicted, Japan will still experience a slowdown of economic growth, reduced savings, and rising costs of pensions, health care and long-term care. However, with appropriate policy measures and rapid implementation, the authors believe that a situation in which both young and old continue to experience long-term improvements in well-being remains possible. This book is arguably the best available English language survey on the economic implications of population trends in Japan. It will be widely read by researchers of economics, demography, public policy and public finance, and will also provide useful supplemental reading for graduate or upper undergraduate courses in economics, social policy, and Asian studies.