It Is very hard for people to resist instant gratification. That explains why the carry trade, borrowing at a low rate to buy high-yielding investments, is so common today. It offers immediate rewards. Because Japanese interest rates are a lowly 0.25%, the yen is widely assumed to be the basis for many carry trades. But, as Tim Lee of pi Economics, a consultancy, points out, the practice is much more widespread; in eastern Europe, many companies and individuals borrow at a lower rate in foreign currencies in order to buy property.
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