Transcripts of the monetary policymaking body of the Federal Reserve from 2002–2008.

This topic is actually close to my heart in terms of research, and I wish I could say it was so and maybe it will be so. [Laughter] I thought it was so around 2000, when we had really strong exports we couldn’t explain, and then it all went away with the recession of 2001-02, and it’s only now coming back. But I looked at a lot of other countries, and it does seem that you can explain these differences between export and import elasticities based on potential growth rates. The one country that seems to fit the worst is the United States, and I have never understood why the most important country is the one that doesn’t fit. I won’t go into details, but there are theoretical reasons to believe that, indeed, you shouldn’t expect such elasticities to be structurally different.

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