Articles providing critical insights and analysis on monetary policy issues impacting the U.S. economy and its deep financial and economic relationship with Mexico.
Impact of inflation shocks on foreign exchange rates reflects central bank stature
The purchasing power parity theory of exchange rates is easily understood: A basket of goods should have the same price in different markets when that price is expressed in a common currency. However, the relationship between market-determined exchange rates and inflation shocks is not always straightforward. In the short run, central bank transparency can become an important determinant.
September 03, 2024
Globalization Institute Working Paper
Just Do IT? An Assessment of Inflation Targeting in a Global Comparative Case Study
This paper introduces novel measures to assess the effectiveness of inflation targeting (IT) and examines its performance across a broad sample of advanced economies (AEs) and emerging market and developing economies (EMDEs).
August 21, 2024
Mexico Economic Update
Mexico’s economy softens in the second quarter
Mexico’s economic activity slowed in the second quarter of 2024, missing market expectations. GDP slowed to an annualized 0.8 percent growth from 1.1 percent the previous quarter due to a loss of momentum in services and an extended contraction in the agricultural sector.
August 14, 2024
Trade liberalization reduces entrepreneurship rate
Our research suggests that if the world becomes increasingly interconnected through international trade, entrepreneurship rates will decrease over time.
August 06, 2024
Globalization Institute Working Paper
Deindustrialization and Industry Polarization
This paper adds to recent evidence on deindustrialization and documents a new pattern: increasing industry polarization over time.
August 05, 2024
Globalization Institute Working Paper
Unequal Climate Policy in an Unequal World
This paper studies climate policy in an economy with heterogeneous households, two types of goods (clean and dirty), and a climate externality from the dirty good.
July 16, 2024
Surging population growth from immigration may have little effect on inflation
U.S. population growth increased sharply recently following a wave of immigration. This article examines what this surprise immigration surge could mean for the macroeconomy.
July 09, 2024
Mexico Economic Update
Mexico’s economy continues growing through second quarter
Mexico’s economy continued growing steadily through the second quarter, according to the monthly GDP proxy. However, high inflation and the recent increase in political uncertainty remain headwinds for the Mexican economy.
July 03, 2024
Unprecedented U.S. immigration surge boosts job growth, output
U.S. labor market conditions are among the main drivers of an unprecedented surge of immigration, the exact size and consequences of which are still being assessed.
July 02, 2024
Mexico Economic Update
Mexico’s economy improves in the first quarter of 2024
Mexico’s economy grew 1.1 percent in the first quarter, driven by the services sector, according to the national statistics bureau.
June 05, 2024