In the meantime, monetary policymakers need to take care of their independence. And they should avoid being taken hostage by financial markets or fiscal policies. Of course, monetary policy has contributed to the unusually low level of long-term interest rates.
The proper regulation of financial products and supervision of financial entities, such as insurers and pension funds, as well as full transparency of new financial products, should be put in place as they are essential to convincing households to switch to more market-based forms of saving.