But it is entirely appropriate, from time to time, for defined-benefit plans to run significant surpluses – or deficits – given the way they pool risks across all members – past, present, and future. BIS Review 47/2007  3  Secondly, sponsors can be hampered by regulations that do not always take sufficient account of their ability to make contributions in the future.
I am less optimistic than some that additional asset purchases will have significant, durable benefits for the real economy. Of course, benefits may well be more substantial than I anticipate. Lower risk-free rates and higher equity prices – if sustained – could strengthen household and business balance sheets, and raise confidence in the strength of the economy.