Hedging in Derivatives Markets: The Experience of Chile
11 Pages Posted: 12 Apr 2013
Date Written: March 2013
Abstract
Prior to the onset of the 2008 financial crisis, domestic FX derivatives markets in Chile had gained depth and liquidity, boosted by the growing hedging needs of private pension funds. During the crisis, Chile suffered significantly less stress than other EMEs, within Latin America and outside. We present evidence suggesting that this was related to the liquidity and resilience of its FX derivatives markets.
JEL Classification: E44, F31, G23
Suggested Citation: Suggested Citation
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