The evolution of derivatives from standardized instruments to custom-made over-the-counter contracts has raised concerns about transparency, regulation, and systemic risk in modern finance.
Hedging is a financial strategy that reduces risk by taking offsetting positions in related assets or markets, dating back to ancient agricultural practices.
Financial markets exhibit unusual behavior with higher frequency of extreme events such as large market drops or rises than expected under a normal distribution.
Discover the rise and fall of the 18th-century Mississippi Bubble, a financial experiment that captivated the French aristocracy and led to devastating consequences.
The Mississippi Bubble was a financial phenomenon in 18th century France, where John Law's paper money system created a speculative bubble that burst, causing widespread financial instability.
Discover the rise and fall of John Law's Financial System in 18th century France, a complex plan to reform the economy through reflation and debt restructuring.
The American stock market's remarkable growth from 1964 to 2007 reflects a complex interplay of factors including sustained economic growth, favorable monetary policies, and increased investor confidence.
Explore the complexities of stock market behavior, influenced by irrational exuberance, animal spirits, and information asymmetry, resulting in volatility and uncertainty.
The resurgence of bondholders due to reduced inflation rates, improved confidence in government-issued bonds, and increased investment in emerging markets.