By Bruno Bonizzi, Jennifer Churchill and Diego Guevara
In early spring 2020 emerging economies (EEs) . Stock and bonds were sold as investors flight to safer investments in Europe and the United States, showing once again the fragile nature of EEs鈥� financial integration. To overcome this problem, one suggested solution is to allow for a larger , such as pension funds, which can stabilise financial markets. While having a large institutional investor base can be a source of demand for domestic financial securities, it is important to review the evidence from the experience of those EEs where pension funds have existed for more than two decades.
As we show in our , the experience of Colombia and Peru can be instructive. Their pension system, while maintaining a significant parallel public Pay-As-You-Go structure, has a sizeable funded private component with assets that have grown These were established as part of the Washington Consensus reforms in the 1990s, following the prior example of Chile.
Read More »
黑料社区 