can potentially offer countries alternative options to insure against external shocks. This paper shows that while these … instruments can explain much of the in-sample variation in borrowing spreads, this fails to materialize in hedging strategies that … and innovation costs could justify the limited interest for this type of hedging in practice …

passive versus active hedging. In addition, it outlines a set of widely accepted best practices in managing currency risk and … presents some of the main hedging instruments in the OTC and exchange-traded markets. The paper also provides some data on the … use of financial derivatives instruments, and hedging practices by U.S. firms. …

commodity-exporting countries. The introduction of hedging instruments such as futures and options enhances domestic welfare …This paper uses a dynamic optimization model to estimate the welfare gains of hedging against commodity price risk for …

This paper examines the role of the derivatives market in South Africa and provides policy options for promoting the … the introduction of commodity futures. However, these markets must be appropriately regulated and supervised. Since such …