Little is known about the behavior of the term structure of interest rates in emerging markets. In this paper we study the dynamics of the term-structure of interest rates in Mexico between 2001 and 2008. We find that term-premia appears to be time-varying, and that over 99% of the total...

This paper describes the dynamics of inflation in the Mexican economy from 1992 to 2007 using the New Phillips curve framework. The purpose is to identify key structural characteristics of the economy (structural parameters) that define the short-run dynamics of inflation. Results show that...