THE IMPORTANCE OF FINANCIAL DERIVATIVES IN A PHASE OF FINANCIAL UNCERTAINTY AND GLOBAL RECESSION

Authors

Keywords
Financial derivatives, credit derivatives, short sales, open interest, daily turnover

Summary
The scale of the importance of financial derivatives can be judged by many indicators, including: extremely fast and versatile development; the sum of outstanding positions in derivatives, which transitory value exceeds from 6 to 10 times the gross annual production of all economies in the world; the attractive income opportunities and unique techniques for risk management. In the same time, there are extreme opinions in which the financial derivatives are blamed for the global financial crisis and huge losses of various types of market players. The present study attempts to find and outline the real importance of financial derivatives for investment activity and global economy in the period from the beginning of financial crisis and the subsequent economic recession. Analyzed manifestations of financial derivatives in key events in recent years have shown their crucial role in „early diagnosing” of the global economic crisis, and their positive impact on capital market and indirect support to real economic sectors in a phase of recession. The methodology includes correlation study between derivatives, stock market and macroeconomic indicators.

JEL: G14
Pages: 34
Price: 3 Points

More titles

  • CHALLENGES TO HORIZON 2020 HEALTHCARE RESOURCE PROVISION

    The problems of health financing, analyzed in practical and applied aspects, are highly relevant today, especially in terms of financial and economic crisis and social insecurity. Attention is directed to such health policies and solutions, which contribute to fiscal sustainability of health systems and transparency through the introduction of new ...

  • DEBT AND MACROECONOMIC VARIABLES IN THE CONTEXT OF THE “EUROPE 2020” STRATEGY

    Theoretical formulations about the nature, characteristics and directions of influence of government debt and government deficits on the main macroeconomic variables are clarified. The size, dynamics and maintenance of all financial obligations undertaken by and on behalf of the state, representing the obligation of the state, covering internal ...

  • RAW MATERIAL EXTRACTION AND ECOLOGIZATION OF THE MINING INDUSTRY

    Under the current economic conditions industrial production ecologization is important for solving diverse problems, new and unfamiliar to the economy. The scientific research entitled: „Raw material extraction and ecologization of the mining industry” is of theoretical-applied orientation. It is relevant to the envi-ronmental problems of mining ...