allows us to evaluate the anchoring of inflation expectations in the Mexican economy. To address this issue, in this paper we …

We explore the dynamics of inflation, inflation expectations, and seigniorage-financed fiscal deficits in Mexico. To do … so, we estimate the model in Sargent, Williams, and Zha (2009) using Mexican CPI inflation data. This model features dual … expected inflation equilibriums and regime switching in the mean and variance of the fiscal deficit probability density …

During the recent inflation episode, the paradigm of separated objectives for monetary and fiscal policies has shown … some limits. Fiscal policies have helped mitigate inflation. We advocate for the emergence of a new paradigm that gives …

have decreased substantially from 2001 onwards, which coincides with the adoption of an inflation targeting regime by Banco … de Mexico. -- Exchange rate pass-through ; import price ; consumer price ; distribution chain ; inflation. …

trajectory. -- Depreciation ; Inflation ; Exchange Rate Pass-through …