Pension Funds and Financial Markets: Evidence from the New EU Member States
22 Pages Posted: 26 Jan 2012
Date Written: March 26, 2009
Abstract
The recently established pension funds in the new EU Member States face investment risks that stem from a challenging macroeconomic environment, including, inter alia, volatile inflation and shallow domestic capital markets. The question arises whether a move to funded pension system in such a volatile economic environment always increases the long-term sustainability of public finances. Against this background, this paper surveys the main challenges for pension systems and public finances in the new EU Member States and provides evidence on pension fund performance in recent years. We conclude that in some of these countries the limited diversification of assets, the impact of high inflation as well as the financial market turmoil may have indeed reduced the positive impact of systemic pension reforms on fiscal sustainability.
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Macroeconomic Implications of Demographic Developments in the Euro Area
By Angela Maddaloni, Alberto Musso, ...
-
Evolutionary Dynamics in Complex Networks of Adaptive and Competing Agents
-
Analysis of Diversification Problems in the Case of Hungarian and Russian Pension Investments
-
The Maturity Structure of Administrative Costs: Theory and UK Experience
By Mamta Murthi, J. Michael Orszag, ...
-
Policy Options and Issues in Reforming European Supplementary Pension Systems
-
Population Ageing and Public Pension Reforms in a Small Open Economy
By Christiane Nickel, Philipp Rother, ...
-
Modelling Stock Returns in the G-7 and in Selected CEE Economies: A Non-Linear GARCH Approach
By Balázs Égert and Yosra Koubaa
-
By Gábor Dávid Kiss and Laszlo Dudas