Economics of Derivatives

This book examines the beneficial and adverse effects of derivatives trading from economic theory and the recent economic history.

List of contents

1. Introduction; 2. Definition and typology; 3. The economic functions of derivatives markets; 4. Market completion; 5. Derivatives and price stabilization; 6. Derivatives and price destabilization; 7. The effects of derivatives on prices of the underlying: a synthesis; 8. Causes of the rapid growth in derivatives trading: a historical perspective; 9. The role of derivatives in the global financial crisis of 2008; 10. Models and their effects on markets; 11. Derivatives and emerging markets; 12. Derivatives and emerging markets; 13. Regulation of derivatives; 14. Derivatives and development: a critique; 15. Regulatory policy for derivatives: a pragmatic approach.

About the author

T. V. Somanathan is Director with the World Bank, Washington and is a member of the Indian Administrative Service. He has served in various positions in the World Bank and in State and Union governments in India.V. Anantha Nageswaran holds a doctorate in finance (on exchange rate behaviour) and has over two decades of experience in global capital markets with leading financial institutions such as UBS, Credit Suisse and Bank Julius Baer. He is an adjunct faculty on international finance and economics at the Indian Institute of Management Bangalore (IIMB) and Singapore Management University. He is a weekly columnist for MINT, a regular contributor to CNBC, Reuters and Bloomberg Television networks and is also a co-founder of the Takshashila Institution.

Summary

Derivative markets have grown spectacularly in size in recent decades. This book discusses the extent to which derivative markets perform socially useful economic functions. It also continues with specific reference to the issue of 'market completion', which some economists regard as an important function of derivative markets.

Product details

• Authors: V Anantha Nageswaran, V. Anantha Nageswaran, Nageswaran V. Anantha, T V Somanathan, T. V. Somanathan, T. V. (The World Bank) Somanathan, T. V. (The World Bank) Nageswaran Somanathan, T. V. Nageswaran Somanathan, Somanathan T. V.
• Publisher: Cambridge University Press ELT
• Languages: English
• Product format: Hardback
• Released: 02.03.2015
• EAN: 9781107091504
• ISBN: 978-1-107-09150-4
• No. of pages: 269
• Subjects: Social sciences, law, business > Business > Economics; Strategisches Management, Economics, Finance, BUSINESS & ECONOMICS / Finance / General, Business / Economics / Finance, BUSINESS & ECONOMICS / Investments & Securities / Derivatives, Developing Countries, Development economics & emerging economies, Development economics and emerging economies, Finance and the finance industry