Memory and the dollar: New evidence on international demand

Mary Amiti, Oleg Itskhoki, Jozef Konings, 19 February 2013Why is it that large movements in exchange rates have small effects on international prices? What does this mean for a crisis-stricken Eurozone? Using firm-level data, this column presents new research that investigates this exchange rate ‘disconnect’. Evidence suggests that the prices of the largest firms – with their disproportionately large share of trade – are insulated from exchange rate movements.

Cecília Hornok, 9 July 2011Trade barriers that delay transactions are like sand in the wheels of a global economy in which firms trade frequently and international production is fragmented. This column presents evidence showing how the elimination of border controls and customs procedures within the EU has contributed to faster trade, lower trade costs, and larger cross-country trade.Full Article: Is faster trade more trade? Evidence from EU enlargement

Mirco Tonin, Michael Vlassopoulos, 26 July 2012Money matters, but is that all? This column presents evidence that social incentives can boost productivity in sectors that rely on pro-social behaviour such as health, education, and social care. It argues that this may help explain the growing popularity of Corporate Social Responsibility programmes within firms.Full Article: Do social incentives matter? Evidence from an online experiment

Gregory Corcos, Massimo Del Gatto, Giordano Mion, Gianmarco I.P. Ottaviano, 10 July 2012As protectionist pressures mount worldwide, it is important to continue to shore up the case for open trade policy. This column presents new evidence from Europe on an old gain from trade – the weeding out effect – namely the way increased cross-border competition selects and favours the most productive firms.

Livia Chi?u, Barry Eichengreen, Arnaud Mehl, 23 May 2012Conventional wisdom states that the dollar took over as the leading international currency after the Second World War. This column presents new evidence from the bond markets suggesting it was much earlier in the 1920s.

Sebnem Kalemli-Ozcan, Bent E. Sørensen, 23 May 2012News reports today are full of negative stories on the Eurozone. This column presents evidence of a much-overlooked benefit. The common currency has led to increased financial integration and in turn increased risk sharing, which helps to significantly reduce output shocks. Those arguing for a break up of the Eurozone should take note.Full Article: Capital gains on international portfolios: New evidence from the Eurozone

Matthew E. Kahn, Matthew J. Kotchen, 21 August 2010Is concern for the environment a luxury good? This column presents data from Google searches for the words “unemployment” and “global warming” by US users. It argues that recessions increase concerns about unemployment at the expense of people’s interest in climate change – in some cases leading them to deny its existence.Full Article: Is concern for the environment a luxury good? Evidence from Google searches

Linda Goldberg, 31 March 2010Is the dollar still the dominant international currency? This column argues that the answer is “yes”. The dollar is used as a major form of cash currency, and is the main currency for exchange rate pegs and for invoicing foreign transactions. Using the dollar results in network externalities; everyone uses the dollar because everyone else is using the dollar.Full Article: The dollar’s international roles