Many scholars have discussed how this could be done through contracts that share risk more effectively between the provider and user of funds.6 Even in the United States, home of financial innovation, though, the kinds of macromarkets that would allow home-owners to hedge the risk of a downturn in the economy, or in their sector, or in house prices, have not really emerged.
What is your view? “The recovery has now been ongoing for around nine months. It is still weak and unevenly distributed across the euro area. And it is vulnerable. Accidents could happen in the global economy that can quickly change the situation. That might be a disruption on the financial markets, or geopolitical risks.