Opinion: How a butterfly in Japan creates waves in the Canadian economy

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The Bank of Japan's decision to move away from an easy-money policy may ultimately affect Canadians. Japanese investors have borrowed money at low interest rates and invested it in U.S. and Canadian bonds, driving up their value and suppressing borrowing costs. If the carry-trade from Japan dampens, demand for U.S. bonds may drop, causing their prices to fall and keeping interest rates from coming down. The Federal Reserve's decision to cut rates and expectations for future interest rates settling at a higher level indicate a shift away from the cheap-money era.

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https://www.theglobeandmail.com/business/commentary/article-how-a-butterfly-in-japan-creates-waves-in-the-canadian-economy/