Properly aligned incentives Finally, the new system should feature clear roles and properly aligned incentives for all players. In the recent turmoil, we saw examples of misaligned interests and competing  6  BIS Review 78/2010  objectives.
Interestingly, the Fed’s study of this issue shows that the decline in the saving rate of households at the top 20 percent of the income distribution accounts for virtually all of the decline in the aggregate personal saving rate since 1989, the first year for which estimates on saving by income quintile are available.