FUTURES CONTRACTS: MARKET ORGANIZATION

The article examines the interpretation of vertical restraints in Chicago, post-Chicago and New Institutional Economics approaches, as well as the reflection of these approaches in the application of antitrust laws. The main difference between neoclassical and new institutional analysis of vertical restraints is that the former compares the results of their use with market organization outcomes, and assesses mainly horizontal effects, while the latter focuses on the analysis of vertical effects, comparing the results of vertical restraints application with hierarchical organization. Accordingly, the evaluation of vertical restraints impact on competition differs radically. The approach of the New Institutional Theory of the firm seems fruitful for Russian markets.

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On Practical Validity of Quantity Theory of Money, or How Much the Dogmatism of Monetary Authorities Costs

Voprosy Ekonomiki ◽

10.32609/0042-8736-2008-7-31-45 ◽

2008 ◽

pp. 31-45 ◽

Cited By ~ 1

Author(s):

S. Glazyev

Keyword(s):

Monetary Policy ◽

Economic Development ◽

Money Supply ◽

Market Equilibrium ◽

Static State ◽

Quantity Theory ◽

Monetary Authorities ◽

State Of The Economy ◽

Market Organization

The article critically considers basic postulates of quantity theory of money. It shows that they reflect the static state of the economy in abstract models of market equilibrium but do not prove true in actual economic processes. In contrast to monetarists’ view, prices can rise as well as fall even if other variables of the monetarist equation are stable. Thus it cannot be used for grounding monetary policy. The author comes to the conclusion on the dogmatism of Russian monetary authorities that seriously hinders the country’s economic development. He proposes to switch to market organization of money supply basing on regulation of the refinancing rate.

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Hedging house price risk with futures contracts after the bubble burst

Proceedings of the 21st Annual European Real Estate Society Conference ◽

10.15396/eres2014_5 ◽

2014 ◽

Keyword(s):

House Price ◽

Futures Contracts ◽

Price Risk ◽

Bubble Burst ◽

House Price Risk

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EFFECTIVE CROSS HEDGING: EVIDENCE FROM PHYSICAL CRUDE PALM OIL AND ITS INTER-RELATED AGRICULTURAL FUTURES CONTRACTS

Management and Accounting Review (MAR) ◽

10.24191/mar.v17i2.812 ◽

2018 ◽

Vol 17 (2) ◽

pp. 123

Author(s):

Noryati Ahmad ◽

Ahmad Danial Zainudin ◽

Fahmi Abdul Rahim ◽

Catherine S F Ho

Keyword(s):

Palm Oil ◽

Futures Contracts ◽

Crude Palm Oil ◽

Oil Futures ◽

Futures Contract ◽

Agricultural Futures ◽

Cross Hedging ◽

Optimal Hedge ◽

Excessive Speculation ◽

Chicago Board Of Trade

Since its establishment, Crude Palm Oil futures contract (FCPO) has been used to directly hedge its physical crude palm oil (CPO). However, due to the excessive speculation activities on crude palm oil futures market, it has been said to be no longer an effective hedging tool to mitigate the price risk of its underlying physical market. This triggers the need for market players to find possible alternatives to ensure that the hedging role can be executed effectively. Thus this investigation attempts to examine whether other inter-related grains and oil seed futures contracts could serve as effective cross-hedging mechanisms for the CPO. Weekly data of inter-related futures contracts from Chicago Board of Trade (CBOT) and Dalian Commodity Exchange (DCE) are employed to cross hedge the physical crude palm oil prices. The study starts from 2006 until 2016. Empirical results indicate that FCPO is still the best futures contract for hedging purposes while Chicago Soybean (CBOTBO) provides second best alternative if cross-hedging is considered. Keywords: Crude palm oil, Crude palm oil futures, Cross Hedging, Optimal Hedge Ratio, Effective Hedging

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