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In a comprehensive research report entitled 'Speculation and Financial Fund Activity', the Organisation for Economic Co-operation and Development (OECD) has reinforced the conclusion of previous EDHEC-Risk position papers, notably "Oil Prices: the True Role of Speculation", November 2008, and "Has There Been Excessive Speculation in the US Oil Futures Markets?", November 2009, that there is no link between the increase in financial investment in commodities and the volatility of the prices of the physical commodities themselves.
At a time when numerous politicians are attempting to pin the blame on participants in the financial industry for all the current ills, this contribution is welcome. As an academic research centre, EDHEC-Risk Institute has long maintained that the questions of regulation should be based not on emotion or populism but on facts.
A link to the OECD report can be found here:
http://www.olis.oecd.org/olis/2010doc.nsf/ENGDATCORPLOOK/NT000029BA/$FILE/JT03282467.PDF
The EDHEC-Risk position papers can be found here:
- Oil
Prices: the True Role of Speculation
- Has
There Been Excessive Speculation in the US Oil Futures Markets?
