We study the relationship between average inflation and inflation uncertainty in Mexico from 1960-1997. Friedman (1977) and Ball(1992) propose models where higher inflation creates increased uncertainty, whereas Cukierman & Meltzer (1986) and Cukierman (1992) argue that an apportunistic Central...

We study variations in the severity of the 1997 financial crisis in a sample of 25 developing countries. We use both currency depreciation and stock market returns as crisis measures. Our key findings are that countries that started 1997 with an exchange rate peg experienced significantly...

In this paper, we study the link between real exchange rate (RER) depreciation and elections in Latin America. Our contribution is threefold. First, we employ a statistical model that takes into account the pervasive conditional heteroskedasticity found in financial data and includes a wide...