Review

John A. Tatom examines two alternative explanations for the recent behavior of the manufacturing sector. The first, the international explanation, suggests that the rise in the international value of the dollar has reduced U.S. competitiveness, depressing manufacturing output.

Kenneth C. Carrara and Daniel L. Thornton look at the cost of holding various types of money, in particular, checkable deposits. The authors approach this issue from both an analytical and a pragmatic perspective.