Global Perspectives: Tom Luce on Public Service, Education Reform
Luce and Dallas Fed President Rob Kaplan discussed his career in law and public service, his decision to become a lawyer and the key challenges facing the U.S. education system.
Will China ever become as rich as the U.S.?
Twenty years ago, a visitor to Beijing would have been struck by the bicycle?s popularity as a form of mass transportation. Today, auto congestion and pollution on the increasingly clogged roads of China?s capital city are pervasive features. In a little more than three decades, China has transformed itself from a largely closed agrarian society to an urban exporting nation commonly viewed as the workshop of the world. ; At current growth rates, China will be the world?s largest economy sometime in the next decade. But will it ever be the richest? Though providing a definitive answer is ...
Central bank transparency anchors inflation expectations
A high statistical correlation can be found between the level of policy transparency among central banks and the anchoring of inflation expectations.
On the record: delving more deeply into globalization
Dallas Fed Vice President Mark A. Wynne, director of the Globalization and Monetary Policy Institute, discusses the creation of a new research center dedicated to improving policymaking in today's more-open economy.
The financial crisis, trade finance and the collapse of world trade
As economic activity in many parts of the world started to recover in the latter half of 2009, trade volumes picked up.
The output effects of government consumption: a note
Government purchases and real wages
Estimating the Natural Rate of Interest in an Open Economy
The concept of the natural or equilibrium rate of interest has attracted a lot of attention from monetary policymakers in recent years. Most attempts to estimate the natural rate use a closed economy framework. We argue that in the face of greater integration of global product and capital markets, an open economy framework is more appropriate. We provide some initial estimates of the natural rate for the United States and Japan in a two-country framework. Our identifying assumptions include a close relationship between the time-varying natural rate of interest and the low-frequency ...
Sticky prices: what is the evidence?
This article reviews the idea that sticky prices are important for understanding business cycles. Mark Wynne begins with a critical survey of the literature documenting the stylized facts about prices in individual markets. His first point is that there is remarkably little evidence that the actual transactions prices of most products are, in fact, sticky. Such evidence as there is to support the notion of widespread price stickiness is heavily biased toward low-tech products that account for a very small fraction of total output and is a thin reed on which to base a theory of business ...