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The effect of option-hedging on the costs of domestic price stabilization schemes.

By: Material type: TextSeries: Working papers series No. 653Publication details: Washington : World Bank, 1991.Subject(s): Summary: The authors argue that whether a stabilization fund is hedged or not, it will inevitably generate large amounts of debt. But hedging the fund will make it more likely to survive in the short term.
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The authors argue that whether a stabilization fund is hedged or not, it will inevitably generate large amounts of debt. But hedging the fund will make it more likely to survive in the short term.

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