Finally, there will be lessons to learn about the effectiveness of various policies— fiscal, regulatory, financial and monetary—and how they interact. Conclusion If there is one common thread to this romp through recent economic history, it is that economists and policy-makers learn through experience. Uncertainty has been a common theme of my predecessors.
By transferring risk from individuals to collectives, pension funds help achieve a more efficient allocation of savings. Pension funds—particularly the very large ones—tend to have sophisticated asset managers. These large funds have the incentive and the ability to invest pools of contributions across appropriately varied asset classes.