This paper analyzes the evolution of fear of floating (FOF) and its effect on output in Chile, Colombia and Mexico. It shows that there has been a gradual rise in exchange-rate volatility as the period of floating lengthens in each country. The paper analyzes the implications of this evolution...

The paper studies the effects of the real exchange rate (RER) on capital accumulation in Mexico in the period since the late 1980s. By testing for the existence of potential asymmetries, the paper seeks to clarify some of the controversies surrounding the subject. It shows the RER’s long-run...

This paper studies the decline of the labour share in Mexico during the period 1990-2015. It calculates the wage share and alternative measures of the labour income share (which includes labour income of the self-employed) for the whole economy, the private business sector, and its major...

The paper studies the effects of the real exchange rate (RER) on capital accumulation in Mexico in the period since the late 1980s. By testing for the existence of potential asymmetries, the paper seeks to clarify some of the controversies surrounding the subject. It shows the RER's long-run...

We analyze some of the effects of the peso’s real appreciation on the output-inflation policy dilemma. Thanks to the appreciation, it is possible to achieve simultaneously a higher real wage and a lower inflation rate without need of output loss. After the capital inflows that support the...

An econometric examination of interest rate differentials reveals the existence of a significant relationship between the level of exchange rate policy credibility in Mexico during 1991-1994, and the country’s macroeconomic performance, the central bank international reserves and the NAFTA...