Abstract
In this paper I analyze whether carry trade returns can be linked to stock market booms in Central and Eastern Europe prior to the crisis of 2007-8. Empirically, I find that from 1999 to 2009 stock markets hiked when carry trades were lucrative. Based on Minsky's "theory of financial instability" I argue that increased risk-taking via carry trades contributed to financial market exuberance in Central and Eastern Europe.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
