The 1987 Mexican Disinflation Program: An Exchange-rate-based Stabilization?

Julio A. Santaella () and Abraham E. Vela
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Julio A. Santaella: Banco de México
Abraham E. Vela: Banco de México

Economía Mexicana NUEVA ÉPOCA, 2005, vol. XIV, issue 1, 5-40

Abstract: We examine whether Mexico’s disinflation experience during 1987-94 fits the widely accepted set of stylized facts of exchange-ratebased stabilization (ERBS) on inflation, the boom-recession business cycle, and the external sector. A cursory look at Mexican data shows that the experience fits quite closely the stylized facts of ERBS. However, the paper shows that there were some important differences and peculiarities of the Mexican case that deserve further study, especially regarding the role of the nominal anchor and the nature of the business cycle.

Keywords: stabilization; disinflation; business cycle; nominal anchor (search for similar items in EconPapers)
JEL-codes: D01 P52 (search for similar items in EconPapers)
Date: 2005
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Persistent link: https://EconPapers.repec.org/RePEc:emc:ecomex:v:14:y:2005:i:1:p:5-40

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