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Over the last three decades, Mexico’s macroeconomic policy has been driven by a sound orthodox strategy: an open … between the exchange rate and prices in Mexico and the US (its main commercial partner), there are other forces affecting the … former. The main factor in this relentless long-term depreciation is the loss of productivity in Mexico relative to the US …
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Despite an initial reversal of capital inflows, the COVID-19 pandemic resulted in relatively mild impacts on net capital flows to Emerging and Developing Economies. In contrast to previous crises, gross capital inflows offset residents' outflows, resulting in relatively stable net capital flows...
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This paper documents that cross-border investment income flows are important for explaining current account balances in major economies. Those investment incomes reflect returns on cross-border asset holdings and on balance often reach magnitudes around 5% of major economies' gross domestic...
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This paper investigates the consequences of the currency devaluation, both in levels and rates, on the balance of payments in a cash-in-advance economy with finite horizons, endogenous capital accumulation and international capital immobility. In this context, a once and for all currency...
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