Unexpected yen appreciation could cause large carry trade exchange rate losses, as could unexpected closing of the interest rate gap with Japan.

Second, carry traders borrow short term money in Japan but may invest in longer term assets outside Japan.

The Best Investments

Investment Needed

Suddenly, foreign creditors curtail short term credit lines.

The short term interest rates it controlled didn't budge.

Short term interest rates cannot be pushed much lower.

But when the entire international system becomes entwined with an excessive amount of short term inter bank lending, the world economy becomes subject to financial panic.

Short term inter bank loans are seemingly less risky than long term lending.

Foreign direct investment.

They are cutting back.

Investment in vaccines is not about short term savings, either in terms of lives or economic costs it is about providing children with lifetime protection and the ability to realize their full potential.

Yet the immediate consequences of Djindjic's death will be tragic.

Investing in Happy Endings

Investment, enterprise and technology

Are Foreign Investors Still Welcome?

This is clearly an extremely sound investment.

Foreign investment has scarcely increased.

The second source is private investment.

More public investment is twice blessed.

Relaxing limits on foreign investment.

It is really not an investment.

Only when both sides make serious efforts to fix their domestic fundamentals will the imbalances be reduced in a serious and sustained way. Short run exchange rate adjustments simply cannot fix negative long term trends.

Short term bank lending from abroad is unstable and therefore dangerous

Short run exchange rate adjustments simply cannot fix negative long term trends.

In short, the Kyoto agreement meant lots of short term pain for little long run gain.

In the meantime, governments and donors should consider cheaper short term options.

Now all of these short term factors have been exhausted, and a Brezhnev like period of stagnation has begun.

Kenen was mainly concerned with short term transfers to smooth out cyclical bumpiness.

Following the hurricane, the Secretariat suspended its program and approved short term permits.

You don t want to lose your investment.

Investments are likely to be stopped or delayed.

Investment in the Russian economy was growing fast.

Infrastructure investment would then follow.

Too Much Saving, Too Little Investment

Investment has been coming in, but more is needed.

In the US, public investment spending has been slashed.

Buy Back or Pay Forward?

Private investment is important, too.

The government's investment will create many jobs.

The effort to liberalize foreign investment has not taken up the slack in investment from the regime s regional political partners.

I am convinced that the main treasure of Russia is its human potential, and a major strategic investment is an investment in people.

Central bankers, more generally, are typically able to provide short or medium term narratives to financial markets.

But confusing short term wobbles with terminal decline is a gross misreading of what is happening.

The most urgent, feasible, and relevant steps involve electoral and legal reforms aimed at avoiding a repeat of the current protests over the presidential vote.