“Financialization of commodity markets based on herd behaviour significantly affects the prices of such basic goods as food staples and energy. The Report proposes measures to increase transparency in physical and derivatives markets, putting in place an internationally coordinated tighter regulation onf financial investors, and it suggests that market surveillance authorities couldd be mandated to intervene directly. The Report finally underlines that the foreign exchange markets aree disconnected from macroeconomic fundamentals. This disrupts the functioning of the real economy. Greater stability of the real exchange rate could be achieved by a system of rules-based managed floating. Such a system could be built on the adjustment of nominal exchange rates to inflation differentials or to interest rates differentials. This can be practiced as a unilateral, bilateral or strategy, but the greatest benefit for international financial stability would result if the rules for managed floating were applied at the multilateral level.” Above is from 2011 UNCTAD's recently released "Post-crisis Policy Challenges in the World Economy.” (See our ARTICLE on First Part of Report - "Grinding to Halt - Economies of Developed Economies?" - diplomaticallyincorrect.org/films/blog_post/grinding-to-halt-economies-of-developed-economies-by-ambassador-mo/34990 Having been an investment banker and attorney in the financial industry and Wall Street, I’m impressed of how laws and regulations have not kept up with “innovation” in the industry. Further, the paramount rationalization for any trade or activity can be too readily rationalized by the theme of “greed is good.” What has generally been an entitled segment of the economy has been too frequently acting without any regard to the broader social or economic good, and at times consciously to the contrary. However, it is not so much the actors that should be blamed as it is those that apply industry and government guidelines-regulations. See our Previous Posts including: "Financial Markets Swerving-Global Recession on Edge"- diplomaticallyincorrect.org/films/blog_post/financial-markets-swerving-global-recession-on-edge-by-ambassador-mo/33537 “Corporate Profits Surge, but …” diplomaticallyincorrect.org/films/blog_post/corporate-profits-surge-but-risks-of-too-slow-global-economic-growth-by-ambassador-mo/34838 ARTICLE – “Financial Jungle – Can Anyone Leash the Predator?” diplomaticallyincorrect.org/films/blog_post/financial-jungle-can-anyone-leash-the-predator-by-ambassador-mo/27281 ) By Ambassador Muhamed Sacirbey














 Facebook – Become a Fan at “Diplomatically Incorrect”














 Twitter – Follow us at DiplomaticallyX


 

 

 More Related Reports at “International Financial Crisis Channel” - diplomaticallyincorrect.org/c/international-financial-crisis