Microeconomic Risk Management and Macroeconomic Stability

• Main Author: Röthig, Andreas (Author)
• Corporate Author: SpringerLink (Online service)
• Format: Electronic eBook
• Language: English
• Published: Berlin, Heidelberg : Springer Berlin Heidelberg, 2009.
• Series: Lecture Notes in Economics and Mathematical Systems, 625
• Subjects: Finance.; Macroeconomics.; International economics.; Economics.; Macroeconomics/Monetary Economics//Financial Economics.; International Economics.; Finance, general.

While the determinants of firms’ optimal hedging strategies on the micro level are well understood, there is rarely any literature dealing with macroeconomic consequences of microeconomic risk management. This book is concerned with the impact of diverse hedging policies on macroeconomic stability....

Table of Contents:

• Preliminary Explorations
• A Micro View: Optimal Risk Management
• Backwardation and Optimal Hedging Demand in an Expected Utility Hedging Model
• Mean-Variance Versus Minimum-Variance Hedging
• A Macro View: Economic Stability
• Corporate Risk Management in Balance-Sheet Triggered Currency Crises
• Arbitrage Pressure, Positive Feedback Speculation, Selective Hedging, and Economic Stability: An Empirical Analysis and Catastrophe Modelling
• Conclusions.