Why might this risk reduce the value of pension funds

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Reference no: EM131022231

In an opinion column in the Wall Street Journal, Martin Feldstein of Harvard University argued with respect to quantitative easing that, "low interest rates are generating excessive risk-taking by banks and other financial investors." He also warned that the risks could have serious negative effects on the value of pension funds.

a. What is quantitative easing?

b. Why might quantitative easing have led investors, banks, and pension funds to engage in excessive risk taking?

c. Why might this risk reduce the value of pension funds?

Reference no: EM131022231

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