Speculation does play an economic role in increasing market liquidity and price discovery but beyond a point, trading without an underlying interest could only increase systemic risk particularly when the same market prices and volatilities get entrenched into the balance sheets of the real sector. Rating agencies 26. Another area where progress has been slow relates to the rating agencies.
A key source of uncertainty became evident in the late 1960s and 1970s as a result of highly contentious debates about the formation of expectations by households and firms.