Investing U.S. Social Security Trust Fund Assets in Private Securities
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Summary:
This paper examines the macroeconomic and distributional consequences of a policy change, other things being equal, that would allow U.S. Social Security trust fund assets to be invested in private securities. Improving the expected return to trust fund assets, by shifting these from government bonds to private securities, tends to reduce (increase) the future claim on national output of the current (future) working population. The effects on aggregate saving and future output depend on whether current workers interpret this policy change as affecting their future Social Security benefits.
Series:
Working Paper No. 1997/112
Subject:
Consumption Extra-budgetary funds Financial institutions National accounts Private savings Public financial management (PFM) Securities Sovereign bonds Stocks
English
Publication Date:
September 1, 1997
ISBN/ISSN:
9781451853568/1018-5941
Stock No:
WPIEA1121997
Pages:
28
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