Alle hieronder opgesomde data zijn beschikbaar met de Open Data Commons Open Database Licentie. Het staat je vrij de data te kopiëren en te distribueren, om afgeleide producten van deze data te maken, en om de data aan te passen en transformeren. Wij vragen wel dat je altijd verwijst naar de brondatabank, je afgeleide producten ook onder ODbL vrijgeeft en geen enkele technologie gebruikt om deze datasets weer gesloten te maken (zoals bijv DRM). Would have given it a 4 star but deducted a star because he repeats the same points over & over again. This is an extremely informative book but I have to say that the writing itself was a little shaky. I'm rating this purely on the information relayed and the concepts covered. The Rise of Carry provides foundational knowledge and expert insights you need to protect yourself from what have come to be common market upheavals—as well as the next major crisis. The authors do not make this distinction sufficiently clear, defining carry as a trade with ‘short exposure to volatility’. This is correct for short volatility trading, but not for FX carry where only volatility in the wrong direction is problematic. But perhaps I am being too pedantic. Higher yielding currencies are usually emerging markets. These get hurt when risk levels are elevated, whilst lower yielding currencies are normally ‘safe havens’ like the US and Japan.

For most of the twentieth century, the neoclassical synthesis in economics was generally believed to provide a solid basis for public policy. There were, nonetheless, significant dissenters. Hyman Minsky, for instance, wrote that “modern orthodox economics is not and cannot be a basis for a serious approach to economic policy.” 1 In the wake of the financial crisis and the great recession of 2008, such questioning became even more vociferous, and criticisms like Min­sky’s are now increasingly accepted. Beschrijving: X, 229 p. Bibliographie: Includes bibliographical references and index. Dewey: 332/.0415 23 Onderwerp: Business cycles. (source)lcsh If you think easing and tightening at the same time sounds like a contradiction, sounds like a loss of control, I’m with you.

My Book Notes

Original Caption) 1930-New York, NY- Run on Bowery Savings Bank. Photo shows depositors lining up ... [+] to withdraw thier money. Bettmann Archive

To explain why this runs counter to expectations, also recall that another critical feature of carry trades is that by definition they involve leverage. Let’s see how liquidity plays out during a volatility spike or downturn: the markets triggers central bank action to stabilize markets, reduce volatility, and ultimately truncate losses for some carry traders who would otherwise have been bankrupted (p. 37, LL&C).

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In this world, with the dominance of the Fed and the dollar, and the liquidity of the S&P 500 derivatives markets, the S&P 500 has evolved to become itself a carry trade at the centre of the global carry regime. A sudden crash in the S&P 500 crashes the global economy. The Fed then reacts by becoming a giant carry trader itself, replacing the private sector carry trade and ultimately reinforcing the carry regime.