Inflation and Exchange Rate Regimes in Mexico.
The paper presents a version of the exchange-rate-regime model of inflation. Quarterly data from Mexico from 1946 to 1995 are used to estimate and test a simultaneous-equation model for wage inflation, price inflation and industrial production, taking account of the Lucas critique and the statistical properties of the data. The main finding is that, after the fall of the fixed-exchange-rate regime in 1976, there was a Barro-Gordon type inflation bias owing to the inability of policymakers to commit to low inflation. There is no significant evidence of political business cycles in inflation. Copyright 2000 by Blackwell Publishing Ltd
Year of publication: |
2000
|
---|---|
Authors: | Li, Carmen A ; Philippopoulos, Apostolis ; Tzavalis, Elias |
Published in: |
Review of Development Economics. - Wiley Blackwell. - Vol. 4.2000, 1, p. 87-100
|
Publisher: |
Wiley Blackwell |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Monetary policy rules and business cycle conditions
Kazanas, Thanassis, (2011)
-
Inflation and exchange rate regimes in Mexico
Li, Carmen A., (2000)
-
Inflation and exchange-rate regimes in Mexico
Li, Carmen A., (1998)
- More ...