Actual carry trade profits that are based on actual expected depreciation indicate that: uncovered interest parity...
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Actual carry trade profits that are based on actual expected depreciation indicate that: uncovered interest parity does not hold systematically, and on average the carry trade is profitable. uncovered interest parity holds, and there is no possibility of profitable interest arbitrage. O purchasing power parity is the best indicator of future currency depreciation. O profits in the carry trade are not taxed, which is a burden for emerging market economies. Actual carry trade profits that are based on actual expected depreciation indicate that: uncovered interest parity does not hold systematically, and on average the carry trade is profitable. uncovered interest parity holds, and there is no possibility of profitable interest arbitrage. O purchasing power parity is the best indicator of future currency depreciation. O profits in the carry trade are not taxed, which is a burden for emerging market economies.
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