Motivated by policy statements of central bankers, we propose to regard the central banker as a risk manager who aims … at containing inflation and the deviation of output from potential within pre-specified bounds. We develop formal tools … of risk management that may be used to quantify the risks of failing to attain that objective. Risk measures inherently …

situation poses to price stability. We propose to regard the central banker as a risk manager who aims to contain inflation … within pre-specified bounds. We develop formal tools of risk management that may be used to quantify and forecast the risks … of failing to attain that objective. We illustrate the use of these risk measures in practice. First, we show how to …

in a budget deficit in excess of the maximum inflation tax. A cap on the deficit dampens inflation expectations and … raises real balances, thus increasing the yield of the inflation tax for any given rate of inflation. This study extends the … work of Drazen and Helpman (1990) by including a stochastic budgetary process and using option pricing theory. It uses …

Inflation and financing of public expenditure by are analysed in an OLG model where the deficit is constrained to be …

In this paper we propose a test of the hyperinflation model of money demand, which is valid under any assumption …

early stages of stabilization. Other countries, like Bolivia, had already run the course and stabilized or, like Mexico, had … paper investigates the dynamics of high inflation and the essential steps in stabilization. …

This paper looks at the factors driving regional growth in Mexico, paying special attention to the potentially growth … formation of adequate social conditions for innovation (the social filter), and spillovers for 31 Mexican states and the Mexico …

very detailed Mexican data for 1994-2004, a period of liberalization in US trade policy vis a vis Mexico, mandated by the …

investigation. We then compare two independent sources of individual-level wage information from Mexico -- firms' wage reports to …

evidence to assess the relative magnitudes of these three effects as they apply to further trade liberalization in Mexico. We … study the determinants of the industry pattern of US imports from Mexico and of value added by Mexico's maquiladora sector … effect of a North American Free Trade Agreement (NAFTA) on pollution in Mexico. …