It is argued that in Mexico there is not a fear of floating in the Calvo-Reinhart sense and that the market, as a result of the monetary policy instrument (corto), has determined a reatively stable exchange rate and more volatile interest rates. Thus, thé instantaneous interest rate response to...

This document presents simulations on the evolution of public finances in Mexico for the 2002-2035 period considering contingent liabilities not reflected in the traditional public balance, and analyzes the possibility of implementing a Balanced Budget Rule (REP). Results suggest that a REP...

This paper was prepared for the World Bank 4th Annual Contractual Savings Conference (Washington DC, April 2008) co-organized by Gregorio Impavido (gimpavido@imf.org). The article shows that account transfers among pension administrators in Mexico barely respond to price or return considerations...