April 10, 2004 | Financial TimesThe idea of using futures markets to help predict everyday events is not quite as crazy as you might think. Derivatives markets are fluid enough to assemble and produce a price, or a probability, for any sort of event - however unpalatable. The University of Iowa has its own functioning futures market, the IOWA ELECTRONIC MARKET (IEM), for staff and students to use. It looks at a range of different markets, including presidential elections, Federal Reserve monetary policy issues, and the like. Students use their own money to back their judgment: their professors say it is a teaching aid.
Contact: Forrest Nelson