Adam Iqbal on Carry Trades, Volatility and Trading Options
Macro Hive Conversations With Bilal Hafeez
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Where Does Real Exchange Rate Volatility Come From?
Trussel: Where does cony volatility come from? Trussel: Ultimately, real exchange rate volatility has to come from the fact that we do have transportation costs across the world. He says one example of where that might happen is if china suddenly produces twice as many widgets and then all of a sudden we impose massive tariffs on them. And what you've got is, you've actually got china starting to look very cheap. Because meanan, one us. Widget is the same price, but one chinese widget is half the price of what it was. trussel: It gives you some pretty intuitive ways to think about how investment should be made in your country
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