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Keywords:trade 

Mexican peso strength noteworthy among emerging markets during Fed tightening

Many emerging-market currencies have depreciated modestly during the Federal Reserve’s tightening cycle that began in March 2022. The Mexican peso, however, outperformed the group during the period.
Dallas Fed Economics

Working Paper
Goods-Market Frictions and International Trade

We present a tractable framework that embeds goods-market frictions in a general equilibrium dynamic model with heterogeneous exporters and identical importers. These frictions arise because it takes time and expense for exporters and importers to meet. We show that search frictions lead to an endogenous fraction of unmatched exporters, alter the gains from trade, endogenize entry costs, and imply that the competitive equilibrium does not generally result in the socially optimal number of searching firms. Finally, ignoring search frictions results in biased estimates of the effect of tariffs ...
Working Papers (Old Series) , Paper 1635

Speech
U.S. Economic Outlook

Remarks by Michael H. Moskow President and Chief Executive Officer Federal Reserve Bank of Chicago. Jewish United Fund Luncheon - The Standard Club - 320 S. Plymouth Ct. Chicago, IL. March 7, 2007.
Speech , Paper 9

Speech
Understanding the evolving relationship between the United States and Mexico

Dallas Fed Senior Vice President Roberto Coronado delivered these remarks at the Western Hemispheric Trade Center Annual Conference at Texas A&M International University in Laredo.
Speeches and Essays

U.S. tariff outcomes dependent on trading partner responses

U.S. tariff policy has historically shifted among competing goals: providing revenue, protecting domestic markets and opening foreign markets to domestic producers. These goals are unlikely to be achieved simultaneously. Modern models applied to the U.S. reveal that tariffs can enhance consumer welfare via terms-of-trade gains, a costly externality on foreign partners, but only if those partners don’t retaliate. Thus, potential consumption gains for U.S. households and businesses depend on policy choices and strategic responses from trading partners.
Dallas Fed Economics

Newsletter
The Impact of Trade on the North American Auto Industry

On September 4–5, 2019, the Chicago Fed held a conference at its Detroit Branch to discuss trade’s role in shaping the North American auto industry. This event brought together nearly 100 attendees, including industry leaders, academics, and policymakers.
Chicago Fed Letter , Volume 427 , Issue 427

Understanding the Net International Investment Position

The U.S. NIIP is the difference between U.S.-owned foreign assets and foreign-owned U.S. assets. Why has the NIIP become more negative in recent years?
On the Economy

Report
Productivity spillovers, terms of trade, and the "home market effect"

This paper analyzes the welfare implications of international spillovers related to productivity gains, changes in market size, or government spending. We introduce trade costs and endogenous varieties in a two-country general-equilibrium model with monopolistic competition, drawing a distinction between productivity gains from manufacturing efficiency and those related to firms' lower cost of entry or product differentiation. Our model suggests that countries with lower manufacturing costs have higher GDP but supply a smaller number of goods at a lower international price. Countries with ...
Staff Reports , Paper 201

Speech
Welcome remarks for the Outlook for North American Trade and Immigration conference

Dallas Fed President Lorie K. Logan delivered these remarks at the Outlook for North American Trade and Immigration conference in Dallas.
Speeches and Essays

Mexico seeks to solidify rank as top U.S. trade partner, push further past China

Mexico's emergence followed fractious U.S. relations with China, which had moved past Canada to claim the top trading spot in 2014. The dynamic changed in 2018 when the U.S. imposed tariffs on China’s goods and with subsequent pandemic-era supply-chain disruptions that altered international trade and investment flows worldwide.
Dallas Fed Economics

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