The Time of Money in Financing and Society
Chapter 9: The Production of the Future
9. The production of the future If financial markets have become markets of the observation of observers and time, and derivatives are tools for buying and selling risk, how does finance change with the spread of derivatives? Derivatives make money work differently. They allow one to buy and sell assets without owning them. They are a new form of money independent of the property of the exchanged objects (section 1). Property reassures about the future because it warrants that one will enjoy a good, even if others might want that good. Money extends this assurance to different goods in the sense that to have money means to have future property. Derivatives let this safety about the future, which they sell and exchange, circulate, without linking it to the property of the goods (or any other property). They deal with safety and uncertainty. If one deals with future uncertainty, however, one actually deals with the future, and does so with very complex and formalized techniques that allow for a picture of the future and its possibilities to be negotiated in the present. However, when these forecasts are correct, the future comes about differently because it reacts to these very forecasts. The real future is different from the expected future and holds surprises, even, and especially, for those who have tried to prepare themselves for the various possibilities (section 2). What is the advantage of such trades? Derivatives increase the liquidity of markets – that is, the available future. The number of possibilities...
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.