The Economics of Derivatives
by TV Somanathan and V Anantha Nageswaran
About the book:
While most books on derivatives discuss how they work, this book looks at the contributions of derivatives to overall economic well-being. It examines both the beneficial and adverse effects of derivatives trading from the perspectives of economic theory, empirical evidence and recent economic history. Aiming to present the concepts in a fair, non-ideological, non-mathematical and simple manner and with the authors’ own synthesis, it draws on economic insights from relevant work in other disciplines, particularly sociology and law. The book also presents some new theoretical ideas and recommendations towards a pragmatic and practical approach for policy-makers. The ultimate objective is to provide a basic conceptual framework which will help its readers form a judgment on whether, when and how derivatives are beneficial or harmful to the economy.
About the Authors:
V Anantha Nageswaran holds a doctorate in finance (on exchange rate behaviour) and has over two decades of experience in global capital markets with leading financial institutions such as UBS, Credit Suisse and Bank Julius Baer. He is an adjunct faculty on international finance and economics at the Indian Institute of Management Bangalore (IIMB) and Singapore Management University. He is a weekly columnist for Mint, a regular contributor to CNBC, Reuters, and Bloomberg television networks. He is also a co-founder and fellow for geoeconomics at the Takshashila Institution.
TV Somanathan is Director at the World Bank, Washington and a member of the Indian Administrative Service. His doctorate in economics was on the subject of commodity and financial derivatives. He is a Chartered Accountant, Chartered Management Accountant and Chartered Secretary. With over 27 years of experience in the World Bank and in the Union and State Governments of India, he combines academic rigour with practical experience in economics, finance, public policy and regulation. His publications include a book titled Derivatives (1998) and more than 80 papers, articles and book chapters.