A carry crash also kicked off the global financial crisis 17 years ago — here’s why it’s unlikely to get as bad this time
- Written by Charles Read, Fellow in Economics and History at Corpus Christi College, University of Cambridge
Many casual readers of the financial press will have learned a new term in the past few days: the “carry trade”. This is the culprit for the rollercoaster state of markets, many market commentators and journalists have opined.
Indeed it also played a role in kicking off the credit crunch and resulting global financial crisis in 2007-08....
