We elaborate some complex stylized facts related to the Mexican economy. The analyzed period runs from 1960 to 2013 with selected subperiods. Our main findings are: 1) there are involuntary idle capacities in the manufacturing industries; 2) the growth of the Mexican economy is not balanced but...

We elaborate some complex stylized facts related to the Mexican economy. The analyzed period runs from 1960 to 2013 with selected subperiods. Our main findings are: 1) there are involuntary idle capacities in the manufacturing industries; 2) the growth of the Mexican economy is not balanced but...

Los años que Albert O. Hirschman vivió en Colombia le sirvieron para moldear el contenido de su principal publicación: La estrategia del desarrollo económico. La experiencia adquirida durante su estadía en Colombia, donde participó en misiones del gobierno que recorrieron todo el país, le...

In 1991, development economist and American public intellectual Albert O. Hirschman wrote the <i>Rhetoric of Reaction </i>[1]. In this book, which was prescient of more contemporary popular books such as Naomi Klein’s <i>The Shock Doctrine</i> [2] and James C. Scott’s <i>Seeing Like a State</i> [3], Hirschman...

The financial crisis and subsequent economic recession led to a rapid increase in the issuance of public debt. But large-scale purchases of bonds by the Federal Reserve, and other major central banks, have significantly reduced the scale and maturity of public debt that would otherwise have been...

This paper examines the transmission mechanism through which unconventional monetary policy affects long-term interest rates. I construct a real-time measure summarizing market projections of the magnitude and duration of the Federal Reserve's Large Scale Asset Purchases (LSAP) program, and...

Although the world’s leading central banks are currently still conducting a decidedly expansionary monetary policy, it can be assumed that, sooner or later, that policy will be tightened. In view of the divergent macroeconomic situations and prospects, the normalisation of monetary policy is...

In this paper we set up a New-Keynesian model that features an interbank market. The introduction of an interbank market is important to analyze liquidity problems among heterogenous agents within the financial sector. First, because this allows for a situation where increased liquidity supply...

Large-scale central bank purchases of government bonds have made the long-term interest rate key in the monetary policy debate. How central banks react to bond market movements has varied greatly from one episode to another. Driving the term premium in long-term rates negative may stimulate...