Derivatives perform two economically-useful purposes: (i) risk shifting, also known as risk management or hedging, and, (ii) price discovery, which is the process of determining the price level for a commodity, asset or other item, based on supply and demand factors. Derivatives provide excellent opportunities to hedge risk for different kinds of participants, importers, export-oriented enterprises etc.
The current US electoral campaign confirms that the issues are similar on both sides of the Atlantic. With one difference. In Europe, the last ten years have also been marked by the birth of the euro. And this is where the lack of consistency arises. The euro was created to bring about monetary stability in Europe. And this goal has been achieved.