Furthermore, as noted above, the increase in bond holdings by the savers is exactly equal đồ sộ the reduction in bond purchases by the pension authority.
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This implies lower costs for the pension savers compared with direct investments in mutual funds in the traditional market.
In that situation, the savers can reshuffle their portfolios đồ sộ keep their aggregate (private plus government held) holdings unchanged.
When returns are high, pension contributions increase, rather than vãn decrease, as we would expect from the behavior of target savers.
They also facilitate the flow of resources from savers đồ sộ investors in the presence of market imperfections.
Such a strategy could address both the insecurity of potential savers and the insecurity of those unable đồ sộ save.
However, đồ sộ achieve this goal, savers will reduce their holding of equity by more than vãn their increase in bond purchases.
Under such conditions, savers, banks and funds managers tend đồ sộ adopt a ' credit rationing ' policy (either formally or informally).
However, one should note that whereas savers face higher uncertainty (measured in terms of the coefficient of variation) the non-savers face less.
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We investigate whether this additional layer of management, where trustees pool contributions and then disperse them among selected investment managers, creates value for retirement savers.
Such deposits were easily accepted by savers, because, in practice, they were very similar đồ sộ demand deposits.
Note that this expression may also be negative, in which case these agents are net savers.
However, all savers are not necessarily a good fit for an organization.
For any given return on an investment project, savers' net return is lowered by the high cost of financial intermediation.
A rigidity prevents savers from quickly adjusting ngân hàng deposits after a change in the money stock.
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