Hyun Song Shin on What We Just Learned From the Yen Carry Trade Blowup

Remember August 5th? That was the day markets around the world plunged in historic fashion, and everyone overnight became an expert on the Yen carry trade. But what is the Yen carry trade? How big is it? Who is making the trade? And what is its connection to markets all around the world? On this episode, recorded in Jackson Hole, we speak with Hyun Song Shin, the Economic Advisor and Head of Research at the Bank for International Settlements. He walks us through the mechanics of the trade, what went on in early August, and the lessons we've already learned from it. This transcript has been lightly edited for clarity.