This article analyzes the determinants of inflation in Mexico during the 1989–2000 period. Inflation is modelled as a function of deviations in the long-run relations that may exist in the monetary, labour and exchange rate markets. By using cointegration techniques, we obtain an...

Latin America’s economic performance is mediocre at best, despite abundant natural resources and flourishing neighbors to the north. The perplexing question of how some of the wealthiest nations in the world in the nineteenth century are now the most crisis-prone has long puzzled economists...