This paper studies the behavior of interest rate differentials in Mexico during the 1992-94 period. It shows that the currency risk premia is positively related to the share of peso denominated debt in total debt and that the magnitude of this effect is considerable. For every 1 percentage point...

This paper studies the widening of wage differentials between skilled and unskilled workers after the major trade liberalization effort that took place in Mexico between 1986 and 1990. In contrast with the implications of the Stolper-Samuelson theorem, that the abundant factor should gain from...

Introducción. La mayoría de los trabajos técnicos relativos al fénomeno de la indización se limitan analizar las consecuencias de indizar algún sector de la economía como por ejemplo el mercado laboral y los mercados financieros. En el caso de la indización salarial Fischer(1977) y...

Cross-country panel data are used to assess the effect of free-trade agreements on flows of foreign direct investment (<EM t="s">fdi</EM>). Free-trade agreements are found to have a significant positive effect on <EM t="s">fdi</EM> flows, and free-trade agreements are found to matter more for the smaller members of the...</em></em>

Mexico is the only country in Latin America that has maintained a floating exchange rate regime for a relatively long period of time. Therefore the study of Mexico’s experience could provide useful lessons for other emerging economies. The paper analyses

Inflation targeting (IT) has been adopted by a growing number of countries and Latin America has been part of this world trend. This paper reviews the recent IT experiences of Brazil, Chile, and Mexico, applying a common empirical framework to the three country cases. Inflation performance under...