The year before, the Economic Journal had published an essay of Sraffa’s that shook the foundations of Marshall’s model of perfect competition. Sraffa was a student of Einaudi’s. For many years he kept up an intellectual correspondence with such philosophers and political thinkers as Wittgenstein and Gramsci. But he was a scholar open to practical problems.
The PWG Principles call upon the key counterparties to commit resources and maintain policies and procedures consistent with best practices for counterparty risk management. These policies and procedures relate to due diligence; exposure measurement, including stress testing; and margin requirements and other credit terms.