Peaking Rates Renew a Popular Emerging Market FX Trade

The video discusses the resurgence of the carry trade, with many emerging market currencies rising against the US dollar. It contrasts this with the IMF meetings in Washington, highlighting a bleak global economic outlook. The focus shifts to Egypt, which has turned to the IMF for aid, facing challenges like currency flexibility and inflation. The video concludes with the struggle to manage global debt crises, particularly in frontier markets.

Discuss the relationship between US-centric recessions and carry trades.

What impact does ongoing inflation have on countries like Egypt?