Articles providing critical insights and analysis on monetary policy issues impacting the U.S. economy and its deep financial and economic relationship with Mexico.
Dallas Fed Economics
How the U.S. might outgrow pandemic-era housing (un)affordability problems
A review of market-based and private forecasters’ expectations suggests that U.S. housing may be at an inflection point. U.S. income growth and, more broadly, the robust U.S. labor market will likely help wring out pandemic-era excesses that led to rapidly deteriorating affordability.
August 13, 2024
Dallas Fed Economics
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
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
Working Paper
Unequal Climate Policy in an Unequal World
This paper characterizes optimal climate policy in an economy with heterogeneous households and non-homothetic preferences. The authors focus on constrained efficiency, where the planner is restricted from transferring resources across households.
July 16, 2024
Dallas Fed Economics
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’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
Dallas Fed Economics
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’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
Southwest Economy
Strong peso, stubborn inflation cloud Mexico’s 2024 growth prospects
Mexican economic performance is likely to slow in 2024, with stubborn inflation, rising labor costs and a strong peso posing downside risks. Conversely, nearshoring and a larger-than-expected fiscal impact could bolster the Mexican outlook.
May 24, 2024
Dallas Fed Economics
Swap lines curbed global dollar shortages, appreciation during COVID-19 crisis
During the initial weeks of the COVID-19 crisis, imbalances in the offshore dollar funding market led to safe-haven appreciation of the dollar. Fed swap lines between the U.S. central bank and counterparts abroad addressed these imbalances, subsequently helping reduce the cost of offshore dollar borrowing, reversing dollar appreciation and providing liquidity.
May 21, 2024