[국제금융론]Connection of the Global Liquidity & Yen-Carry trade 영문레포트

소개글

Yen-Carry trade에 관한 영문레포트입니다.

목차

Ⅰ. Introduction
What is the Yen-Carry Trade?
What is the Impact of Global Liquidity?
Connection of the Global Liquidity & Yen-Carry trade
Ⅱ. B a c k g r o u n d
How did the Yen-Carry trade happen? There is Japanese economic history.
# Japanese economic development`s process and their recession
; Introduced background of `Zero-interest policy`
# Maintenance of `Zero-interest policy`
Ⅲ. T h e P r e s e n t S t a t e
Ⅳ. C o n c l u s i o n
Solutions

본문내용

Ⅰ. Introduction
What is the Yen-Carry Trade?
If can understand Yen-Carry Trade, we should know definition of arbitrage. Internet encyclopedia site, wikipedia.com explains `arbitrage` as next line.
Arbitrage is the practice of taking advantage of a price differential between two or more markets. Combination of matching deals are struck that capitalize upon the imbalance, the profit being the difference between the market prices. When used by academics, an arbitrage is a transaction that involves no negative cash flow at any probabilistic or temporal state and a positive cash flow in at least one state; in simple terms, a risk-free profit.
- written by wikipedia.com
As explaining of wikipedia.com, arbitrage trading takes a profit between two or more markets when the price is different. That profit is called risk-free profit, because gap of price doesn`t need risk to take a profit.
For example, smith can borrow money from Mitsubishi bank in Japan at an annual 0.5% of borrowing rate. And he also can deposit money to City bank in U.S. at an annual 5.25% of deposit rate. Let`s assume that exchange commission & trading fee are free. Before 1 year, Smith borrowed money from 100million yens from Japan, and exchanged. So he got a million dollars and deposited it to U.S. Now, he gets deposit of 105,250,000 dollars from City bank. Then he exchanges and pays borrowing money and interest payment to Mitsubishi bank. As a result, he takes a profit of 4,750,000 yens. Most important thing of this example is Smith doesn`t have any money, but he earns 4,750,000 yens.

참고 자료

일본정치론, 현대일본학회, 논형, 2007 일본의 정치경제 pp.301-331
http://www.sjsu.edu/faculty/watkins/bubble.htm
http://en.wikipedia.org/wiki/Economy_of_Japan
http://www.ucsc.edu/oncampus/currents/97-10-13/hutchison.htm
http://www.ucsc.edu/oncampus/currents/97-10-13/hutchison.htm
산은 경제연구소 엔화강세보고서 2007.9.19
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『최근 과잉유동성이 금융시장에 미치는 영향과 대책』 박덕배
‘Pressure grows on yen carry trades’ By Peter Garnham Published: November 13 2007 21:45 | Last updated: November 13 2007 21:45 -Financial Times-
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