Sunday, June 7, 2009

World Forex


Controversy about currency speculatorsand their effect on currency devaluations and national economies recurs regularly. Nevertheless, economists including Milton Friedman have argued that speculators ultimately are a stabilizing influence on the market and perform the important function of providing a market for hedgers and transferring risk from those people who don't wish to bear it, to those who do.[15] Other economists such as Joseph Stiglitz consider this argument to be based more on politics and a free market philosophy than on economics.[16]

Large hedge funds and other well capitalized "position traders" are the main professional speculators.

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