Anthony Landry is a Senior Research Advisor at the Bank of Canada and an Adjunct Professor of Finance at the Wharton Business School of the University of Pennsylvania. Prior to joining the Bank, Landry was an Economic Policy Advisor and Senior Economist in the Research Department of the Federal Reserve Bank of Dallas.
Landry is an expert in macroeconomics, international finance, and international trade and investment. His research articles have appeared in many academic journals, including the American Economic Review and the Journal of International Economics. He received his PhD in economics from Boston University in 2007.
Capital-goods imports have become an increasing source of growth for the U.S. economy. To understand this phenomenon, we build a neoclassical growth model with international trade in capital goods in which agents face exogenous paths of total factor and investment-specific productivity measures.
The classical dichotomy predicts that all of the time-series variance in the aggregate real exchange rate is accounted for by non-traded goods in the consumer price index (CPI) basket because traded goods obey the Law of One Price. In stark contrast, Engel (1999) claimed the opposite: that traded goods accounted for all of the variance.
In this paper, we argue that differences in the cost structures across sectors play an important role in firms’ decisions to adjust their prices. We develop a menu-cost model of pricing in which retail firms intermediate trade between producers and consumers.
"IKEA: Product, Pricing, and Pass-through," (with Marianne Baxter), Research in Economics, vol. 71(3), pp. 507-520, September 2017
"Borders and Big Macs," Economics Letters, vol. 120, pp. 318-322, August 2013
"Economic Rebounds in U.S. and Euro Zone: Deceivingly Similar, Strikingly Different," (with Carlos Zarazaga), Economic Letter, Federal Reserve Bank of Dallas, vol.7(3), February 2012
"How the U.S. Tax System Stacks Up against other G-7 Economies," Economic Letter, Federal Reserve Bank of Dallas, vol. 6(12), November 2011
"The Globalization of Ideas," Economic Letter, Federal Reserve Bank of Dallas, vol. 5(11), November 2010
"State-Dependent Pricing, Local-Currency Pricing, and Exchange Rate Pass-Through," Journal of Economic Dynamics and Control, vol. 34(10), pp. 1859-1871, October 2010
"The Quantitative Role of Capital-Goods Imports in U.S. Growth," (with Michele Cavallo), American Economic Review, vol. 100(2), pp. 78-82, May 2010
"Expectations and Exchange Rate Dynamics: a State-Dependent Pricing Approach," Journal of International Economics, vol. 78(1), pp. 60-71, June 2009
"The Big Mac: a Global-to-Local look at Pricing," Economic Letter, Federal Reserve Bank of Dallas, vol. 3(9), September 2008. Recommended for further reading by the Journal of Economic Perspectives vol. 23(1), Winter 2009