Pummeling Derivatives

Christopher L. Culp

Johns Hopkins University - Institute for Applied Economics, Global Health, and Study of Business Enterprise; Swiss Finance Institute; Compass Lexecon

Steve H. Hanke

Johns Hopkins University - Department of Economics


International Economy, September/October 1994

During the past year, the press has had a field day pummeling “derivatives.” The Wall Street Journal has even joined in the fun. The grist for the journalists’ mills has been provided by the big losses on derivatives reported by Metallgessellschaft, Proctor & Gamble, Air Products, Gibson Greeting Cards, Piper Jaffray, and the like.

Derivatives also have not gone unnoticed by the armies of legislative beavers who inhabit the environs of Washington, D.C. Even though over a dozen studies – most by the government – in the last two years have effectively explained the numerous benefits of derivatives, legislators have chosen to focus only on the risks these financial instruments create. Unfortunately for the many users of derivatives, the legislative proposals in the pipeline are rooted in a fundamentally flawed regulatory paradigm and, in fact, would increase financial risks facing derivatives users.

Number of Pages in PDF File: 3

Keywords: Steve Hanke, International Economy, Christopher Culp, Derivatives, Pummeling, Risk, Legislation

Open PDF in Browser Download This Paper

Date posted: January 23, 2013  

Suggested Citation

Culp, Christopher L. and Hanke, Steve H., Pummeling Derivatives (1994). International Economy, September/October 1994. Available at SSRN: http://ssrn.com/abstract=2205425

Contact Information

Christopher L. Culp
Johns Hopkins University - Institute for Applied Economics, Global Health, and Study of Business Enterprise ( email )
3400 N. Charles Street
Baltimore, MD 21218
United States
Swiss Finance Institute ( email )
c/o University of Geneve
40, Bd du Pont-d'Arve
1211 Geneva, CH-6900
Compass Lexecon ( email )
332 South Michigan Avenue
Suite 1300
Chicago, IL 60604
United States
Steve H. Hanke (Contact Author)
Johns Hopkins University - Department of Economics ( email )
3400 Charles Street
Baltimore, MD 21218-2685
United States
410-516-7183 (Phone)
410-516-8996 (Fax)
Feedback to SSRN

Paper statistics
Abstract Views: 220
Downloads: 17

© 2015 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo2 in 0.344 seconds