Trade integration

• Vertical Specialization and Gains from Trade

  Staff Working Paper 2017-17 Patrick Alexander

  Multi-stage production is widely recognized as an important feature of the modern global economy. This feature has been incorporated into many state-of-the-art quantitative trade models, and has been shown to deliver significant additional gains from international trade.

  Content Type(s): Staff research, Staff working papers Topic(s): Economic models, International topics, Trade integration JEL Code(s): F, F1, F11, F14, F6, F60

• Accounting for Real Exchange Rates Using Micro‐Data

  Staff Working Paper 2017-12 Mario J. Crucini, Anthony Landry

  The classical dichotomy predicts that all of the time-series variance in the aggregate real exchange rate is accounted for by non-traded goods in the consumer price index (CPI) basket because traded goods obey the Law of One Price. In stark contrast, Engel (1999) claimed the opposite: that traded goods accounted for all of the variance.

  Content Type(s): Staff research, Staff working papers Topic(s): Exchange rates, International financial markets, Trade integration JEL Code(s): F, F3