Search Results
Discussion Paper
Remittances and COVID-19: A Tale of Two Countries
Looking at the effects of the COVID-19 pandemic on workers' remittances flowing from the United States, this article focuses on the experiences of two countries, El Salvador and Mexico, which account for approximately 30 percent of all immigrants currently residing in the United States. Following the second quarter's economic lockdown, transfers to these countries experienced perplexing dynamics. Specifically, remittances to El Salvador witnessed a record 40 percent sudden drop, while Mexico recorded an unexpected 35 percent increase. We discuss some of the narratives proposed to explain this ...
Journal Article
Remittances and COVID-19: A Tale of Two Countries
Looking at the effects of the COVID-19 pandemic on workers’ remittances flowing from the United States, this article focuses on the experiences of two countries, El Salvador and Mexico, which account for approximately 30 percent of all immigrants currently residing in the United States. Following the second quarter’s economic lockdown, transfers to these countries experienced perplexing dynamics.Specifically, remittances to El Salvador witnessed a record 40 percent sudden drop, while Mexico recorded an unexpected 35 percent increase. We discuss some of the narratives proposed to explain ...
Journal Article
When more is better: assessing the southeastern economy with lots of data
The authors estimate a model that provides a single indicator for the southeastern economy, making it easier for policymakers and analysts to assess regional economic conditions and compare them to the broader economy.
Journal Article
Is more still better? Revisiting the Sixth District Coincident Indicator
A revised version of the D6 Factor model of the southeastern economy is better than the original at describing contemporary economic activity and allows for historical comparisons across several business cycles.
Journal Article
Buy foreign while you can: the cheap dollar and exchange rate pass-through
Despite the dollar?s real depreciation in the past few years, the U.S. trade deficit has continued to increase, with the level of imports reaching record highs. Why has the cheaper dollar not made imports more expensive and exports more attractive and, in turn, reduced the trade deficit? ; This article presents evidence on the degree of exchange rate pass-through (ERPT)?the extent to which U.S. domestic import prices have moved in response to changes in the exchange rate?from December 1993 through December 2004. Using monthly data, the authors first decompose domestic import prices to their ...
Journal Article
Should we worry about the inverted yield curve?
Journal Article
A falling dollar : good or bad news?
Against some other major currencies around the world, the value of the U.S. dollar has dropped considerably in recent years. Whether it helps or harms the U.S. economy is a matter of perspective.
Journal Article
The evolution and implications of the U.S. current account deficit
The global economy has focused increasing attention on the U.S. current account deficit. Placing this economic measurement in perspective is central to understanding its potential effects.
Working Paper
Investment-specific technology shocks and international business cycles: an empirical assessment
In this paper, we first introduce investment-specific technology (IST) shocks into an otherwise standard international real business cycle model and show that a thoughtful calibration of them along the lines of Raffo (2009) successfully addresses several of the existing puzzles in the literature. In particular, we obtain a negative correlation of relative consumption and the terms of trade (Backus-Smith puzzle), as well as a more volatile real exchange rate, and cross-country output correlations that are higher than consumption correlations (price and quantity puzzles). Then we use data from ...
Working Paper
Bayesian estimation of NOEM models: identification and inference in small samples
This paper studies the (potential) weak identification of these relationships in the context of a fully specified structural model using Bayesian estimation techniques. We trace the problems to sample size, rather than misspecification bias. We conclude that standard macroeconomic time series with a coverage of less than forty years are subject to potentially serious identification issues, and also to model selection errors. We recommend estimation with simulated data prior to bringing the model to the actual data as a way of detecting parameters that are susceptible to weak identification in ...