Archive for August 18th, 2011

18/08/2011

What Do We Really Know About ‘Hot Money’?

Human Wrongs Watch

By Raúl de Sagastizabal/Politicapress.com*

Hot money is the “purely speculative money,” which enters into an economy or an economic sector in order to earn a short-term and/or huge profit and leave quickly, as long as it finds more profit elsewhere. Hot money refers the funds that net speculators move, the professional speculators, who spend 24/7 looking for the opportunity to obtain more and more profits.

Wall Street | Wikimedia Commons

There is no consensus among economists, even among government authorities, on the advantages and disadvantages of speculation.

There is no consensus either on the difference between “positive” speculation and the “net”, professional speculation.

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