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Global Institute articles

Articles providing critical insights and analysis on monetary policy issues impacting the U.S. economy and its deep financial and economic relationship with Mexico.

 

  • Special Report

    USMCA trade outlook matters for the U.S., not just for Canada and Mexico

    While the overall impact on the U.S. of a redrawn regional trade agreement with Mexico and Canada appears modest in most plausible scenarios, policies promoting regionalization differ sharply in their impacts.

  • Dallas Fed Economics

    Mitigating tariffs via USMCA may have limited 2025 price increases

    Higher tariffs do not automatically show up one-for-one in consumer prices. Price effects depend on how firms respond. Foreign exporters may cut pre-tariff prices to preserve access to the U.S. market, while domestic importers or retailers may absorb part of the increase with lower margins.

  • Dallas Fed Economics

    Does it matter who finances the government’s debt?

    Government debt financed from domestic savings has a smaller effect on interest rates than government debt financed from foreign borrowing, and nations that are net international creditors can borrow more cheaply than net international debtors. These observations help explain massive government borrowing since 2008 while bond yields remained persistently low.

  • Mexico Economic Update

    Mexican economy gains momentum

    Mexico's economy expanded in the second quarter. According to preliminary estimates, GDP grew 6.1 percent annualized quarter over quarter, up from a 2.4 percent contraction in Q1.

  • Working Paper

    The Effects of U.S. Public R&D on Global Growth

    This paper provides the first causal estimates of the global social returns to U.S. public R&D.

  • Dallas Fed Economics

    How USMCA compliance cushioned the 2025 tariff shock

    Despite regional sourcing and compliance costs, USMCA-based firms enjoy an edge over competitors outside North America facing higher U.S. tariffs.

  • Working Paper

    Subnational Bilateral Remittance Flows in the U.S.-Mexico Corridor: A Multi-Source Imputation and Validation

    This paper exploits bilateral remittance flows between U.S. and Mexican states during 2013–25 to construct and validate a multi-source origin–destination framework linking Banco de México’s U.S.-state outflows with Mexican state-level receipts.

  • Working Paper

    xtcipsunb: The CIPS Panel Unit Root Test for Unbalanced Panel Data

    This paper develops and demonstrates the command xtcipsunb, which implements the cross-sectionally augmented panel unit root test (CIPS) from Pesaran (2007) and Pesaran, Smith and Yamagata (2013) for unbalanced panels.

  • Dallas Fed Economics

    International comparisons show AI effect on productivity

    Because AI use varies across countries, we can draw on international data to investigate the relationship between AI exposure and productivity growth at the sector level. The positive relationship in the U.S. fits a pattern visible among countries and appears related to high AI use.

  • Mexico Economic Update

    Mexican economy gains some momentum

    Mexico’s monthly GDP estimate increased in April, following an annualized 2.4 percent contraction in output in the first quarter of 2026.