With the Fed now aggressively cutting US interest rates to keep the bursting of a real estate bubble from devastating the US financial system and economy, is the dollar about to turn into the yen- th…

Stephen Jen of Morgan Stanley insists not-so-big.  Or at least that the large size of the carry trade cannot be proved – and that the impact of any recent unwinding has been overstated.   That is his…

The current issue of Foreign Affairs contains the rebuttal that Nouriel and I wrote to the David Levey and Stuart Brown’s "Current account deficits do not matter" article that appeared in the March/…

Andrew Rozanov of State Street knows a thing or two about how official institutions manage their money (that is a big part of his current job) and a thing or two about Japan (he was based in Tokyo fo…

That at least is what the market seems to think.  The carry trade has bounced back. The Australian dollar -- a high carry currency -- is setting new highs (v. the US dollar at least).  The kiwi has r…