Hyun Song Shin on How Big the Yen Carry Trade Really Is

This podcast episode examines the complexities of the carry trade and its global implications, highlighting the involvement of various actors, including institutions beyond mere speculators. Hyun Song Shin discusses the significance of FX swaps in facilitating liquidity and credit across markets, emphasizing the necessity for better data to understand off-balance sheet transactions in a transitioning financial ecosystem. The conversation delves into risk management practices and their amplification effects during market volatility, calls for a revised global financial conditions index, and underscores the importance of a nuanced understanding of financial dynamics in a globalized market.