Japan’s economic resurgence and rising domestic interest rates could have significant ripple effects across global financial markets. BWC Vice Chair Rebecca Patterson analyzes the decades-long yen carry trade, in which Japanese investors moved capital overseas in search of higher returns, and the potential consequences as those funds become increasingly attractive to bring back home. The piece also considers what capital repatriation could mean for U.S. Treasury yields, the dollar, and policymakers handling inflation, economic growth, and rising government debt. 

To read the full piece in The New York Times, click here. 

All views expressed by members are their own and not reflective of the views of the Bretton Woods Committee.