Dallas Fed President Richard W. Fisher discusses the importance of geography in an increasingly global economy: the study and nurture of ties to Mexico to keep tabs on the Texas economy.

Richard W. Fisher

English

Research Papers in Economics

    President’sPerspective
In an increasingly 
globalized world, 
geography still matters, 
and to keep tabs on the 
Texas economy, we must 
study and nurture 
our ties to Mexico.
I have a special fondness for Mexico and its 
people. I spent several of my formative years 
there, learning the nation’s history, culture and 
language. During my career, I have maintained 
ties  to  our  southern  neighbor.  From  1997  to 
2001, I served as deputy U.S. trade representa-
tive, working closely with the Mexican govern-
ment to help realize the benefits of the North 
American Free Trade Agreement (NAFTA). 
U.S.–Mexico trade surged in the wake of 
NAFTA, which took effect in January 1994, and 
much of that growth has benefited Texas. Mex-
ico is Texas’ largest trading partner, responsible 
for 34 percent of the state’s exports. Laredo and 
El Paso handle 57 percent of all U.S.–Mexico 
land-based trade. In an increasingly globalized 
world, geography still matters, and to keep tabs 
on the Texas economy, we must study and nur-
ture our ties to Mexico.
To that end, the Federal Reserve Bank of 
Dallas has developed and maintained a long-
standing relationship with our partners at Banco 
de México. Through regional meetings, informal 
exchanges, conferences and shared research in-
terests, we help contribute to the Federal Re-
serve System’s knowledge of the Mexican economy and to the Dallas Fed’s regional 
perspective. Guillermo Ortiz, former governor of Banco de México and Mexican 
secretary of finance, serves on the advisory board of the Dallas Fed’s Globalization 
and Monetary Policy Institute. 
Earlier this year, we were fortunate to host Banco de México Governor Agustín 
Carstens to discuss economic growth, trade and monetary policy. In a conversa-
tion with Governor Carstens in this issue of Southwest Economy, readers will gain a 
greater understanding of how Mexico’s fiscal, monetary and banking reforms helped 
our neighbor’s economy rebound quickly from the recent recession. 
Needless to say, Mexico has come a long way since my childhood years in 
Mexico City. Macroeconomic growth and stability, established after the 1994 peso 
crisis, have allowed Mexico to pursue reforms essential to improving the lives of its 
citizens. That we now compare Mexico to other developed economies is a tremen-
dous achievement and reflects the work of diligent and dedicated public servants 
such as Governor Carstens.
  Richard W. Fisher
  President and CEO
  Federal Reserve Bank of Dallas

President's perspective

http://www.dallasfed.org/assets/documents/research/swe/2011/swe1102a.pdf

President's perspective

Abstract

Similar works

Full text

Available Versions

Research Papers in Economics