This article uses conventional models to evaluate whether the term structure of interest rates can predict economic activity in Mexico. A positive relationship between interest rate differentials and economic activity is detected, even after controlling for the monetary policy stance through...

This note presents the arguments for and against the move from a monetary policy interest rate indexed to past inflation to a rate set in pesos (nominal) that took place in August 2001. The debate within the Central Bank was long and at sometimes hot, and