Pension Reform and Macroeconomic Stability in Latin America

May 1, 2007

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Format: Chicago

Jorge Roldos. Pension Reform and Macroeconomic Stability in Latin America, (USA: International Monetary Fund, 2007) accessed December 26, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper reviews macroeconomic aspects of pension reforms in Latin America, focusing on financial market stability and fiscal sustainability. Concentration of pension fund portfolios in government bonds remains high, and the lack of new investment alternatives has distorted asset prices. Countries have gradually liberalized investments abroad, but remain wary of the impact on foreign currency markets. The fiscal costs of the transition to funded systems have been higher than expected, and have contributed to high debt levels. The paper highlights the importance of coordinating changes in portfolio limits with debt management policies and measures to develop securities markets.

Subject: Pension reform, Pension spending, Pensions, Public debt, Sovereign bonds

Keywords: Chile, Deficit, GDP, Investment, Market, WP

Publication Details

Pages:

32
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2007/108
Stock No:

WPIEA2007108
ISBN:

9781451866728
ISSN:

1018-5941

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