Destabilizing carry trades

We offer a model of currency carry trades in which carry traders earn positive excess returns if they successfully coordinate on supplying excessive capital to a target economy. The interest-rate differential between their funding currency and the target currency is their coordination device. We sol...

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Bibliographic details
Main Author: Plantin, Guillaume
Song Shin, Hyun
Format: Publication
Language: English
Place of publication: Systemic Risk Centre, The London School of Economics and Political Science 20.10.2014
Data of publication: 2014-10-20
Online Access: available in Bonn?
Database: OpenAIRE (Open Access)
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