Feroli, Michael - Federal Reserve Board (Board of Governors of the … - 2003
accord well with the
model as presently constructed. One might object that, for instance, the U.S. trades more
with Mexico … than with Japan, so that leaving Mexico out would jeopardize the realism of
the model. However, while it certainly is true … that some realism is lost, the fact that the
U.S. trade imbalance with Mexico is consistently much smaller than with Japan …