ECONOMIST’S EDGE
Commodity Risks: Describing the Unobservable
Commodity Risks: Describing the Unobservable
By Bluford Putnam, Ph.D., Chief Economist, CME Group and Member of the JPMCC’s Research Council
This article makes the case for why volatility is not the same as risk and then describes an alternative approach to risk assessment, which is illustrated with an example from the corn market. An important next step in the author’s research process will be to make the new risk metrics, which are intuitively described in this paper, available publicly.
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