The role of future trading in commodity markets has often been a subject of controversies in India, between those who look at future markets as a guiding force for price discovery, risk sharing and market efficiency and others who contest such claims, maintaining that future trade has been responsible for speculation-led price increases, especially as at present. Prof. Sunanda Sen, formerly senior professor at the Centre for Economic Studies and Planning (CESP), Jawaharlal Nehru University, writes.
BY all media accounts, the annual gathering of the global business financial and commercial elite at the Swiss resort, Davos – the World Economic Forum – enacted the theatre of the absurd. This glitzy superstructure that was created and sustained on the basis of the speculative boom of the financial bubble was described by one of the columnists as follows: "Just as a neutron bomb destroys life, while leaving structures intact so Davos goes on while the culture that supports it is dead."
Curbs on speculatory finance and an aggressive expansionary fiscal policy are the answers to what has gone wrong in the world today,writes Sunanda Sen.
Any government of the day is duty-bound take measures to insulate ourselves from such global speculation and protect the livelihood of our people. After all, if inflation is a global phenomenon, so is bird flu. Do we not take measures to protect ourselves from the spread of this disease?, asks CPI(M) Politburo Member Sitaram Yechury