This kind of solution has been increasingly adopted for DC pension plans in a number of countries. Financial markets also offer strategies that drastically reduce the exposure to investment risk. One possibility is to restrict portfolio choices to fixed-income instruments, especially index-linked bonds, or to use options.
Unconventional monetary policy measures have so far contributed to mitigating funding stresses in the banking system and disordered deleverage. In turn, this has allowed firms and households to maintain access to finance. But the non-standard measures have also helped to remove uncertainty and restore confidence.