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Pension Reform and Macroeconomic Stability in Latin America

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  • Mr. Jorge Roldos

Abstract

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.

Suggested Citation

  • Mr. Jorge Roldos, 2007. "Pension Reform and Macroeconomic Stability in Latin America," IMF Working Papers 2007/108, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2007/108
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    References listed on IDEAS

    as
    1. Indermit S. Gill & Truman G. Packard & Juan Yermo, 2005. "Keeping the Promise of Social Security in Latin America," IDB Publications (Books), Inter-American Development Bank, number 59998, February.
    2. Gill, Indermit S. & Packard, Truman G. & Yermo, Juan, 2005. "Keeping the Promise of Social Security in Latin America," IDB Publications (Books), Inter-American Development Bank, number 346.
    3. repec:idb:brikps:59998 is not listed on IDEAS
    4. Eduardo Walker & Fernando Lefort, 2002. "Pension Reform And Capital Markets: Are There Any (Hard) Links?," Abante, Escuela de Administracion. Pontificia Universidad Católica de Chile., vol. 5(2), pages 77-149.
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    Cited by:

    1. Tao Sun & Ms. L. Effie Psalida, 2009. "Spillovers to Emerging Equity Markets: An Econometric Assessment," IMF Working Papers 2009/111, International Monetary Fund.
    2. Kristian Niemietz, 2009. "The Nationalisation Of Retirement Savings Accounts In Argentina," Economic Affairs, Wiley Blackwell, vol. 29(1), pages 49-53, March.
    3. Caroline Van Rijckeghem, 2010. "Determinants of Private Saving in Turkey: An Update," Working Papers 2010/04, Bogazici University, Department of Economics.
    4. Dayoub, Mariam & Lasagabaster, Esperanza, 2008. "General trends in competition policy and investment regulation in mandatory defined contribution markets in Latin America," Policy Research Working Paper Series 4720, The World Bank.
    5. Ramon Moreno & Marjorie Santos, 2008. "Pension systems in EMEs: implications for capital flows and financial markets," BIS Papers chapters, in: Bank for International Settlements (ed.), Financial globalisation and emerging market capital flows, volume 44, pages 45-69, Bank for International Settlements.

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    Keywords

    WP; investment; market; deficit; Chile; GDP;
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