Dollar carry trade risk premiums - unlike dollar-neutral or foreign exchange carry risk premiums - are positively … (typically based on untestable claims) in which the variables above are proxies for the latent (quantity of) risk and price of … risk states - and the business cycle - in the U.S. explains the results in the present paper. However, I avoid making this …

understanding of currency carry trade returns, and invalidates, for example, explanations invoking return skewness and crash risk …