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Bank:Federal Reserve Bank of Dallas 

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.
Dallas Fed Economics

Fed’s Mortgage-Backed Securities Purchases Sought Calm, Accommodation During Pandemic

We explore the Federal Reserve’s purchases of agency MBS—mortgage bonds guaranteed by Ginnie Mae, Fannie Mae and Freddie Mac—and related market dynamics during the pandemic, including why mortgage rates fell to historic lows.
Dallas Fed Economics

Don’t Look to Oil Companies to Lower High Retail Gasoline Prices

While U.S. retail gasoline prices in many regions have remained stubbornly high since March, this situation reflects frictions in the retail gasoline market rather than the supply of oil or the price of oil.
Dallas Fed Economics

Journal Article
Money market deposit accounts versus money market mutual funds

Economic and Financial Policy Review , Issue Nov , Pages 29-38

Working Paper
How successful is the G7 in managing exchange rates?

The paper assesses the extent to which the Group of Seven (G7) has been successful in its management of major currencies since the 1970s. Using an event-study approach, the paper finds evidence that the G7 has been overall effective in moving the U.S. dollar, yen and euro in the intended direction at horizons of up to three months after G7 meetings, but not at longer horizons. While the success of the G7 is partly dependent on the market environment, it is also to a significant degree endogenous to the policy process itself. The findings indicate that the reputation and credibility of the G7, ...
Globalization Institute Working Papers , Paper 24

Working Paper
Optimal monetary policy in a currency union with interest rate spreads

We introduce ?financial imperfections? - asymmetric net wealth positions, incomplete risksharing, and interest rate spread across member countries - in a prototypical two-country currency union model and study implications for monetary policy transmission mechanism and optimal policy. In addition to, and independent from, the standard transmission mechanism associated with nominal rigidities, financial imperfections introduce a wealth redistribution role for monetary policy. Moreover, the two mechanisms reinforce each other and amplify the effects of monetary policy. On the normative side, ...
Globalization Institute Working Papers , Paper 150

Working Paper
Voluntary and Mandatory Social Distancing: Evidence on COVID-19 Exposure Rates from Chinese Provinces and Selected Countries

This paper considers a modification of the standard Susceptible-Infected-Recovered (SIR) model of epidemics that allows for different degrees of compulsory as well as voluntary social distancing. It is shown that the fraction of the population that self-isolates varies with the perceived probability of contracting the disease. Implications of social distancing both on the epidemic and recession curves are investigated and their trade off is simulated under a number of different social distancing and economic participation scenarios. We show that mandating social distancing is very effective ...
Globalization Institute Working Papers , Paper 382

As population trends shift, where will future workers come from?

Population is a fundamental determinant of a country’s productive capacity. More specifically, labor, along with capital and the efficiency with which the two can be combined (total factor productivity) determine how much a country can produce at any point in time.
Dallas Fed Economics

Journal Article
U.S.–Mexico manufacturing: back in the race?

After joining the World Trade Organization, China made great strides in global manufacturing. But in recent years, manufacturing has shifted back to North America, and in some sectors, Mexico has a clear advantage over China. North America?s improved manufacturing outlook bodes well for the U.S.?Mexico border region.
Crossroads , Issue 1 , Pages 1-4

Speech
Texas redux, America restrained (with a discussion of the limits of monetary policy)

Remarks before the Texas Manufacturers Summit 2012, San Marcos, TX, February 15, 2012 ; "In a nutshell, Texas continues on a path it has been on for over two decades, outperforming the nation in economic growth and job expansion. We have fully recovered the jobs lost during the Great Recession and have punched through previous peak employment levels."
Speeches and Essays , Paper 103

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