Comment on Savona, Maccario, and Oldani’s “On Monetary Analysis of Derivatives”

  • Peter M. Oppenheimer


Commentators and discussants tend either to focus on disagreements with principal authors or else to pursue their own unrelated thoughts. So let me stress at the outset that I strongly endorse the authors’ central conclusion concerning tension between the findings of microeconomic research on derivatives and their possible macroeconomic impact. Microeconomic research, as reported by Paolo Savona, Aurelio Maccario, and Chiara Oldani (henceforth SMO), appears to show that derivatives reduce volatility and enhance efficiency of financial markets, but macroeconomically derivatives create a potential for more severe financial-market disruption. I return to this contrast in my concluding paragraphs.


Monetary Policy Central Bank Hedge Fund European Central Bank Monetary Aggregate 
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  1. Hirsch, F. (1977) “The Bagehot Problem.” The Manchester School. Manchester University, Dept. of Economics.Google Scholar

Copyright information

© Springer Science+Business Media New York 2000

Authors and Affiliations

  • Peter M. Oppenheimer
    • 1
  1. 1.Christ ChurchOxfordUK

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