The carry trade — almost wordless

The idea

Borrow in a currency with low interest rates, lend in a currency with high interest rates.

The image

Photo by Patti via stock.xchng

The question

Am I wrong?

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2 Responses to The carry trade — almost wordless

  1. Steven says:

    Except most of the time you get the cheese. The carry trade has been remarkably fruitful, even considering the periodic crashes.

    http://www.nber.org/chapters/c7288.pdf

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