This paper shows that an uninsured fully-funded defined-benefit (DL) pension is effectively a defined-contribution (DC) pension invested in a special type of fixed-income security, one that imposes a large amount of diversifiable inflation risk on plan participants and that is apparently...

This paper develops a model of bank behavior that focuses on the interaction between the incentives created by fixed-rate deposit insurance and a bank's choice of its loan portfolio and its market-traded financial instruments. The model is used to analyze the consequences of the Federal Reserve...

Federal funds and eurodollar futures contracts are among the most useful instruments for deriving expectations of the future path of monetary policy. However, reading policy expectations from those instruments is complicated by the presence of risk premia. This paper demonstrates how to extract...