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200908Mysterious ProfitBurnsideA. Craig

August 2009

Mysterious Profit200908BurnsideA. Craig

Mysterious Profit
The carry trade is an enigma in the financial world. When experts attempt to explain its continued profitability using traditional risk factors such as consumption growth, stock market returns, and other more complex predictors, they fail miserably. Sergio Rebelo and his colleagues discovered a tantalizing new way to minimize the risk posed by the unpredictable.

BurnsideA. Craig200908Mysterious Profit

A. Craig Burnside

Martin Eichenbaum

Isaac Kleshchelski

Sergio Rebelo