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The Globalization of Carry
What Do (Financial) Markets “Want”?
From the perspective of a standard textbook of financial economics, the question “What do financial markets want?” would seem nonsensical. A financial market is supposed to be little different from any other type of market, the farmers’ market in the center of town, for instance. It is either a physical place or a virtual place, where buyers and sellers meet to conduct transactions that are mutually beneficial. The shoppers get the vegetables for dinner, and the farmers make their living. It does not make any sense to talk or think about what the farmers’ market “wants,” so why should it make any sense to talk about what the financial markets “want”?
Yet in the financial world, ...
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