In a robust critique of a recent paper by the public interest group Finance Watch (“Investing Not Betting: Making Financial Markets Serve Society,” April 2012), EDHEC-Risk Institute has taken issue with a number of positions that this paper deems to be self-evident, e.g. that speculators must have a minority role in futures markets; that excessive speculation undermines the commodity price formation mechanism; and that there should be a linear relationship between a commodity’s supply-and-demand data and its price.
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