New Zealand is just a small part of the yen carry trade, a $500bn (£254bn) worldwide flow of Japanese savings and cheap credit into the global system - a trade big enough to lower global bond yields and juice house prices in Britain, Europe, and America.Japan's finance ministry says $100bn of this is hedge fund money, which he believes is a manageable level that can be "unwound" without causing a systemic crisis. The rest is "sticky", involving longer-term investments by Japanese pension funds, insurance companies, and private savers, or mortgage loans to eastern Europe. For better or worse, most of the money is trapped where it is for now.

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