Understanding “The Rise of Carryâ€: A Critical Analysis of Volatility, Risk, and Financial Instability in Global Markets – Book Review

Leandro Yacoubian and Daniel Padilla Garcia
Additional contact information
Leandro Yacoubian: Universidad Empresarial Siglo 21, Córdoba, Argentina
Daniel Padilla Garcia: Instituto Federal de Educação, Ciência e Tecnologia do Ceará, Brazil

Economic Alternatives, 2026, issue 2, 764-767

Abstract: This book review critically examines The Rise of Carry: The Dangerous Consequences of Volatility Suppression and the New Financial Order of Decaying Growth and Recurring Crisis by Tim Lee, Jamie Lee, and Kevin Coldiron (McGraw-Hill, 2020). The authors present a compelling thesis on the rise of “carry trades†and how their proliferation contributes to systemic fragility within modern financial systems. This review explores the central themes of volatility suppression, distorted incentives in monetary policy, and the long-term macroeconomic consequences of a financial system increasingly reliant on stability as an illusion. The review offers a scholarly assessment of the book’s empirical foundations, its theoretical contributions, and its relevance for academics and policymakers interested in macro-financial stability. It also reflects on the implications of “carry dynamics†during post-crisis monetary regimes and considers how the book adds to the broader literature on speculative bubbles, market-based risk, and financial globalization.

Keywords: risk; monetary policy; financial crises; financial stability; book review; carry trade; volatility suppression; macroeconomic risk; systemic fragility; speculative dynamics; global finance (search for similar items in EconPapers)
Date: 2026
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.unwe.bg/doi/eajournal/2026.2/EA.2026.2.18.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nwe:eajour:y:2026:i:2:p:764-767

Access Statistics for this article

More articles in Economic Alternatives from University of National and World Economy, Sofia, Bulgaria Contact information at EDIRC.
Bibliographic data for series maintained by Vanya Lazarova ().