Barry Schachter
Published: 1997
Total Pages: 396
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Hardbound. This volume provides high quality academic research on the ongoing, and sometimes heated, public policy debate over the benefits of bank derivatives and trading activities. This debate is centered on the potential adverse systemic effects of these activities. To date, relatively little of what is known of the economic causes and consequences of these activities is the result of scientific scrutiny. Firstly, the volume documents the trends in trading activities and derivatives usage. Secondly, this book discusses the economic motivation for, and economic consequences of banks' derivatives and trading activities. Thirdly, the regulatory options and their potential consequences are evaluated. Recommendations for a reasoned supervisory response, based on the analyses in this book, conclude the volume.