Analysis On Economic Effects Of Pension Funds Management

With the rapid rise in the life span of the population and the growing number of aging people, pension funds play an increasingly important role in the fields of finance and macro-economics. With regard to economics, the author tries the best to reach the final target of social security, namely satisfying the needs of the aging.The paper is composed of four parts.First, the paper introduces some principal rules on pension fund engagement. Second, using overlapping generation (OLG) models calibrated on OECD countries, the author investigates the macro-economic impact of collection strategies of pension funds. Then, the author suggests that pension funds should be operated using a market mechanism. Third, by "General Equilibrium Models" and "Fractal Market Hypothesis", the author discusses the financial influences of pension funds as institutional investors. Finally, by the positive analysis of the correlations between the Corporate Governance, Private Savings and Pension Funds, the paper concludes that pension funds are indeed a very important part of micro-economics.This paper focuses on the pension funds' macro-middle-micro economic effects. With theoretical and empirical studying tackles, the author solves some problems about the pension funds reforms. Meanwhile, the author gives some practical suggestions for enhancing the efficiency of the whole economic style.