Sunday, July 06, 2008

Oil Prices – Speculation Cause?

One more research paper examines the issue of Oil Price and various reasons for the same. ( http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1154686 ) The paper is by Stevans and Sessions and it contains refutation of Paul Krugman’s argument.

In short the paper contends that eliminating six month futures contract would help reduce impact of speculation on oil prices. Contention is that is one possible remedy for policy makers.

Any takers?

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