Answer to Question #116586 in Finance for Sam Hooper

Question #116586
According to basic economic theory, it should not be possible to make profits by borrowing in a low yielding currency and investing in a higher yielding currency (the carry trade), as any extra interest gained is eliminated by a depreciation of the higher yielding currency. Critically review the literature concerning this anomaly and use this to evaluate reasons for the carry trade's continuing existence.
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Expert's answer
2020-05-16T16:08:25-0400
Dear Sam Hooper, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order

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