The carry trade — almost wordless

November 28, 2011

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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  1. Steven 2011-11-28 at 16:29 - Reply

    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

    • Pat 2011-11-28 at 16:51 - Reply

      Steven,

      Thanks for adding the reference.

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