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Carry Trade Caravan
Borrow cheap, lend dear. Learn the famous carry trade, and why it can crash.
You'll learn
- How interest rate gaps between countries attract money
- What a carry trade is
- Why carry trades unwind suddenly in a panic
How to play
1
Start in January 2007: borrow cheap yen, hold Australian dollars and earn about 6% a year.
2
Every 4 weeks, stay in or step out, on real exchange rates.
3
Compare your result with someone who never left.