Yen Carry Trade Explained: Why Japan Finally Waking Up Is Shaking Global Markets The yen carry trade explained in one sentence: for decades, the world has borrowed nearly-free money in Japan and invested it everywhere else — and in its latest data, Japan gave its clearest signal yet that the nearly-free era is ending. The … Read more
Central Banks Around the World: How Different Countries Manage Their Money Central banks around the world all do a similar job — managing a country’s money — but they are far from identical. The US Federal Reserve gets most of the global attention, but every major economy has its own central bank, each with its … Read more
Deflation: Why Falling Prices Can Be More Dangerous Than Rising Ones Deflation sounds like wonderful news. If inflation means your money buys less over time, then deflation — falling prices — should mean your money buys more. Cheaper groceries, cheaper cars, cheaper rent. What could possibly be wrong with that? Quite a lot, as it … Read more