Carry Trades and Currency Crashes

Author

Kenneth Rogoff, Michael Woodford, Markus Brunnermeier, Daron Acemoglu, Stefan Nagel, Lasse Pedersen

Publication Year

2008

Type

Journal Article

Abstract

n/a

Journal

NBER Macroeconomics Annual 2008

Volume

Pages

313-347

Documents

Currency crash risk caused by sudden unwinding of carry trades may discourage speculators from taking on large enough positions to enforce UIP.