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6 Cards in this Set
- Front
- Back
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What is Moral hazard in the context of the documentary? |
Invest these countries, the risk is minimal as the IMF will bail you out if the investment fails. |
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What is carry trade? |
By selling a currency with low Interest Rates to buy currencies with higher Interest Rates to obtain the difference. |
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What did US monetary policy have to do with the Mexican peso crisis? |
Investors invested in Mexico because of its high Interest Rates, until the Fed dramatically raised rates to where investors abandoned Mexico. |
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What did they mean by “the Brazilian watched Yeltsin go to bed drunk andthem waking up with a hangover?”.
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Once investments in Russia failed and costed investors money, they tried to recover the losses by selling Brazilian Assets. |
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What was the role of capital controls and did Soros approve of them?
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The role was minimal, Soros believed them to be important as capital flows can be destabilizing. |
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What about Rubin's view on capital controls?
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He found them to be unnecessary. |
