What’s A Derivative?

A colleague (non-econ) asks: What's a "derivative" in plain terms? ┬áThe plainest answer, yet not very helpful, is that derivatives are a Wall Street cross between the Frankenstein ┬ámonster and the blob: they're a banker-made monster that's out of control and swallowing the global economy. But let's look at derivatives in a less inflammatory way. … Continue reading What’s A Derivative?