More on Yen Carry Trade
U.S. Treasury Secretary Henry Paulson however is completely clueless on the subject, dismissing European complaints about yen weakness by saying it is priced on a "competitive market". Are interest rates -the basis of the carry trade holding down the yen- set by "competitive market forces"? I don't think so. But I guess it is to much to ask from someone who is only Treasury Secretary to understand such a elementary economic truth.