The Ethics of Financial Speculation in Futures Markets

35 Pages Posted: 6 Oct 2013

See all articles by Ingo Pies

Ingo Pies

Martin-Luther-University Halle-Wittenberg

Matthias Georg Will

Martin Luther University of Halle-Wittenberg - Faculty of Economics and Business Administration

Thomas Glauben

University of Kiel

Sören Prehn

Leibniz Institute of Agricultural Development in Transition Economies (IAMO)

Date Written: October 4, 2013

Abstract

This article sketches an ethics of (financial) speculation in futures markets. (1) It identifies an intentionalistic fallacy prevalent in moral criticisms of speculation in general and of financial speculation in particular. (2) It scrutinizes the degree to which the recent debate on financial speculation with agricultural commodities follows the general pat-tern of moral criticism and its intentionalistic fallacy. (3) It then provides a theoretical and empirical in-depth analysis of long-only index funds engagement in futures markets and concludes that moral criticisms which put them in the pillory as "hungermakers" are unjust(ified). This proves that ethics, understood as a theory of morality, can criticize moral criticisms of financial speculation on moral grounds. (4) Finally, this article discusses the option of interdisciplinary cooperation between ethics and economics.

Keywords: ethics, speculation, financial speculation, futures market, agricultural commodities, index funds, moral criticism

JEL Classification: A12, D84, G23, P34, Q14, Q18

Suggested Citation

Pies, Ingo and Will, Matthias Georg and Glauben, Thomas and Prehn, Sören, The Ethics of Financial Speculation in Futures Markets (October 4, 2013). Available at SSRN: https://ssrn.com/abstract=2336200 or http://dx.doi.org/10.2139/ssrn.2336200

Ingo Pies

Martin-Luther-University Halle-Wittenberg ( email )

Grosse Steinstrasse 73
Halle/Saale, DE Saxony-Anhalt 06108
Germany
+49 0 345 55 23420 (Phone)

HOME PAGE: http://ethik.wiwi.uni-halle.de/2166_199920/2166_199912/

Matthias Georg Will (Contact Author)

Martin Luther University of Halle-Wittenberg - Faculty of Economics and Business Administration ( email )

Germany

Thomas Glauben

University of Kiel ( email )

Department of Food Economics & Consumption Studies
D-24098 Kiel
Germany
+49 431 880-7372 (Phone)
+49 431 880-7308 (Fax)

Sören Prehn

Leibniz Institute of Agricultural Development in Transition Economies (IAMO) ( email )

Theodor-Lieser-Str.2
Halle, 06120
Germany

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