This article studies the response of Mexico's monetary policy to inflows of workers' remittances. Previous studies have shown that remittances can have an impact on several macroeconomic variables of the receiving country (e.g. exchange rate, inflation and output, among others). Mexico has the...

The price puzzle has been the focus of many studies, however, most of these studies have focused on developed economies and especially on the U.S. Owing to this tendency; we do not know if the VAR framework produces the price puzzle in developing economies. This study investigates the existence...

The positive response of prices to an increase in interest rates or contractionary monetary policy has been documented by several empirical studies. According to monetarist as well as IS-LM models, an increase in interest rates or contractionary monetary policy reduces aggregate demand leading...

This article examines the impact of monetary policy shocks on the U.S. housing market using an identification procedure similar to the one suggested by Uhlig (Journal of Monetary Economics, 2005). The identification procedure imposes sign restrictions on the response of some variables for a...