International Economy, September/October 1994
3 Pages Posted: 23 Jan 2013
Date Written: 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.
Keywords: Steve Hanke, International Economy, Christopher Culp, Derivatives, Pummeling, Risk, Legislation
Suggested Citation: Suggested Citation
Culp, Christopher L. and Hanke, Steve H., Pummeling Derivatives (1994). International Economy, September/October 1994. Available at SSRN: https://ssrn.com/abstract=2205425