Variance decompositions of the Mexico-United States real exchange rate are examined using monthly data on consumer … tradable goods and nominal exchange rates holds only in periods in which Mexico was not under a regime of exchange …-rate management. In periods in the sample in which Mexico had a managed exchange-rate regime, the variability of prices of non …

the Mexican economy, and use it to analyze Mexico's 1994-95 crisis. When subjected to a sudden stop, the model accounts …

, and the Sudden Stops that accompanied the collapse of Mexico's managed exchange rates, could result from an endogenous …

large devaluation episodes: Argentina (2001), Brazil (1999), Korea (1997), Mexico (1994), and Thailand (1997). We conduct a …

reasonably successful empirical account of why Mexico needed to devalue its exchange rate in 1994. This model provides a way to … rate crisis in other developing countries. The results suggest that Mexico's exchange rate was about 25 percent overvalued …