Antón, Arturo; Villegas, Alan - In: El Trimestre Económico LXXX (4) (2013) 320, pp. 773-803
This paper presents a small open economy model to study the role of real interest rate shocks in Mexico. The interest rate is divided in two terms: an international rate and a country risk premia. Simulations show that the model with endogenous risk premia is able to explain several stylized...