The Carry Trade and Uncovered Interest Rate Parity

Basic economic theory tells us that borrowing money in a currency with low interest rates should not yield a profit compared to borrowing in a currency with high interest rates. This is because the interest rate differential should simply inform us about expected exchange rate depreciations. But, when it comes to the City, does the theory stand? Has it ever? Do funds make money because they ignore the theory?

This is a free public lecture by Jagjit Chadha, Gresham Professor of Commerce.

There is no need to book in advance for this lecture. It runs on a first come first served basis.