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Economic Perspectives

Thomas H. Klier and James Rubenstein

This article explores how, under the North American Free Trade Agreement (NAFTA), Mexico has become an integral part of North America’s motor vehicle industry. The authors track the dramatic increase in Mexico’s auto production and exports over the past 20-plus years and also explain which automakers make which types of vehicles across Mexico and where they are shipped.

Lisa Barrow and Lauren Sartain

Study on expansion of choice in Chicago public schools finds racial segregation has not changed significantly but students are more likely to attend a school with peers who have similar incoming test scores, especially students from lower-income neighborhoods.

Maude Toussaint-Comeau and Robin Newberger

Minority-owned banks failed at relatively high rates during the financial crisis. More recently, there is evidence of expansion in the sector’s number of branches and extension into new markets, although challenges related to funding and capital remain.

The Event-Study Activity Puzzle

Jeffrey R. Campbell, Jonas D. M. Fisher, Alejandro Justiniano, and Leonardo Melosi

If news of higher future interest rates reflects a shift in the stance of monetary policy, then we expect it to lower projections for real GDP growth and raise projections for unemployment. However, the data point to quite different conclusions.

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