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"This paper deals with the relationship between inflation targeting and exchange rates. I address three specific issues: first, I analyze the effectiveness of nominal exchange rates as shock absorbers in countries with inflation targeting. This issue is closely related to the magnitude of the...
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1. Analytical framework -- 2. Inflation-targeting approach -- 3. Policy rules -- 4. Mexico : inflation …-targeting approach 2001-2012 -- 5. Mexico : policy rules, 2001-2012 -- 6. The de-linking of the variable exchange rate as a nominal … anchor of the economy in the conduct of monetary policy in Mexico. …
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