The pattern of adjustment of euroarea countries’ external competitiveness to dollar and risk aversion shocks has become more similar since the euro’s creation.

As the world economy slowly recovers from the Great Recession and global trade flows remain weak, net trade contributions to domestic growth become more critical.

The differences in what consumers pay for a given product in eight Texas cities increased considerably in the 2000s—Dallas being by far the most expensive city in the sample. A strong price adjustment mechanism, however, ensures that the relative price between any two Texas locations tended to...