Hoffmann, Andreas - In: Journal of Post Keynesian Economics 36 (2013) 1, pp. 15-30
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...