The abrupt destruction of financial wealth due to postWWI and WWII hyper-inflation and asset price collapse led many countries to switch from funded to PAYG schemes (Perotti and Schwienbacher, 2007). 22  See for example Modigliani, Muralidhar and Ceprini (2000), and Modigliani and Muralidhar (2004).
8  BIS Review 148/2008  with the Treasury each year so that the risky pension fund returns are exchanged with a guaranteed rate of return.