Thoughts on financial derivatives, systematic risk, and central banking: a review of some recent developments

摘要: This paper critically reviews the literature examining role of central banks in addressing systemic risk. We focus on how growth derivatives markets might affect that role. Analysis risk policy is hampered by lack a consensus theory propose set criteria theories should satisfy, and we discuss number proposed literature. argue concerns about effects appear somewhat overstated. In particular, derivative do not unduly prone to disturbances. Furthermore, trading may increase informational efficiency financial provide instruments for more effective management. Both these tend reduce danger crises. However, complexity contracts (in their high implicit leverage nonlinear payoffs) complicate process regulatory oversight. addition, make conduct monetary difficult. Most imply critical as ultimate provider liquidity. countervailing moral hazard must be recognized addressed through vigilant supervision.