By: Arjyo Mitra
A credit default swap (CDS) is a financial transaction that is based on the risk of a certain underlying event. It derives its value from its promise of protection from the debilitating effects of the event. However, its use in financial markets has evolved to serve more complex purposes than simply offering protection against risk.
Buyers and sellers are brought together in an arrangement in which the buyer of the CDS protection makes periodic payments (also known as “premiums” or “spreads”) to the seller. In exchange for these...
The fifth in SPI’s Inequality Series
AN OVERVIEW OF MINIMUM WAGE LEGISLATION
Minimum wage legislation is hotly debated. A minimum wage is the lowest hourly, daily or monthly remuneration employers legally have to pay to workers. The main purpose of the legislation is to ensure employers, who usually have higher bargaining power in the labor market, do not exploit their workers and that workers earn a fair living wage.
Apart from doing good to labor, proponents of the minimum wage legislation also argue the legislation can benefit the employers...