This work develops a theory of the real effects of futures markets, their role in the inter-temporal allocation of resources, and their effects on economic and social welfare. Futures are neither insurance nor a gamble, but, Professor Stein argues, given the market's influence on expected output, actual supply, price variance and competition, they have become essential risk management tools. In this study he surveys the current and potential uses of futures, from traditional commodities to forward-pricing guidelines. The author presents his analysis as a model, not a manual. There are applications for the foreign exchange market as well as traditional commodities. In the case of interest rate and stock index futures, the focus is upon the capital formation process--a significant policy issue. Stein also provides a consistent theoretical explanation of the numerous empirical studies which have been conducted in this area. Relevant to economists, government regulatory agencies, and professional futures market participants, the work represents a new perspective in the controversy among monetarists, Keynesians and the New Classical Economics.
- ISBN10 0631151397
- ISBN13 9780631151395
- Publish Date 20 November 1986
- Publish Status Out of Print
- Out of Print 15 July 1993
- Publish Country GB
- Publisher John Wiley and Sons Ltd
- Imprint Blackwell Publishers
- Format Hardcover
- Pages 200
- Language English