Abstract: Abstract This chapter presents the responses to some questions and/or comments raised during the panel on managing commodity price volatility. A participant commented that he had worked on the issue of systematic hedging for a Colombian fund, and they had discovered that systematic hedging was essentially useless. He suggested that self-insurance was the only option. Jukka Pihlman responded that systematic hedging works in many scenarios, but it is not a panacea, pointing to the airline industry as an example. Ignacio Briones agreed with the participant's views on systematic hedging. Patrick Bolton asked whether the consumer was missing from this discussion, which focused on producers. John Sfakianakis remarked that this was a problem for oil-exporting countries, which sought security of demand for their product.
Publication Year: 2011
Publication Date: 2011-11-15
Language: en
Type: book-chapter
Indexed In: ['crossref']
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