Governing Global Derivatives analyzes the role of the most important financial innovation of the last two decades - financial derivatives - in a global dimension. The evolution of derivatives, especially Over the Counter (OTC), and the possibility of managing risks tailored to customers' needs, are the basic recipe for the success of derivatives. This book focuses on the role of derivatives from a macroeconomic point of view, considering how monetary theory and policy, fiscal policy and the growth process are affected. It fills a gap by rethinking the way financial markets are considered in the macroeconomy and the transmission mechanism of impulses.

Chiara Oldani is Lecturer of Economics, Faculty of Political Science, University of Viterbo 'La Tuscia', Italy.

Contents: Preface; The macroeconomics of derivatives: the issue of measurement and accounting; Derivatives and monetary policy: global stability; Derivatives and fiscal policy: risks and hazard; The theory of investments and derivatives: the frontier of economic analysis; Summary; Challenges in governing global derivatives; References; Index.