The authors use a threshold autoregressive model to confirm the presence of nonlinearities in sectoral real exchange rate dynamics across Mexico, Canada, and the United States for the periods before and after the North American Free Trade Agreement (NAFTA). Although trade liberalization is...

Few studies have investigated how the large and persistent swings of the dollar over the past two decades have affected the profits of U.S. manufacturing firms. Using an econometric model of manufacturing profits, this article evaluates the overall impact of exchange rate changes on aggregate...

The Economic Letter summarizes the papers presented at the symposium "Revived Bretton Woods System: a new paradigm for Asian development?" held at the Federal Reserve Bank of San Francisco on February 4, 2005, under the joint sponsorship of the Bank's Center for Pacific Basin Studies and the...