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across countries and sectors. On the other hand, opening to trade boosts individual firms’ productivity growth, via a number … of channels, and also enhances allocative efficiency across firms, in turn increasing aggregate productivity growth. One …
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between the exchange rate and prices in Mexico and the US (its main commercial partner), there are other forces affecting the … former. The main factor in this relentless long-term depreciation is the loss of productivity in Mexico relative to the US …
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Meese and Rogoff (1983) and subsequent studies find that economic fundamentals are apparently not able to explain exchange rate movements, but we argue that this so-called "Exchange Rate Disconnect Puzzle" arose because researchers such as Meese and Rogoff (1983) did not use the right...
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as well as weighted foreign prices is a homogeneous function of a country's international investment position. We find …
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