A derivative which has an economic variable or a macroeconomic index as underlying. The first exchange-traded economic derivative (the Consumer Price Index futures) was introduced in 1985 by the Coffee, Sugar and Cocoa Exchange (CSCE) in New York.
This product was linked to a macroeconomic variable that provides an approximate thermostat for the price level and inflation nationwide. Other macroeconomic variables or indexes include core inflation, gross domestic product (GDP), manufacturing, initial jobless claims, retail sales, international trade balance, non-farm payroll, inter alia.
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