Risk Aversion, Global Asset Prices, and Fed Tightening Signals
In this post, we look back at global asset market developments over the Tapr Tantrum past summer, and measure how changes in global risk aversion affected the values of carry-trade currencies and emerging market equities between May and September of last year and how the initial signal of a possible change in U.S. monetary policy raised global risk aversion. Published on Liberty Street Economics, March 05 2014.