Did the Bank of Mexico follow a systematic behaviour in its transition to an inflation targeting regime?

Jesus M. Garcia-Iglesias (), Rebeca Muñoz Torres and George Saridakis

Applied Financial Economics, 2013, vol. 23, issue 14, 1205-1213

Abstract: The main determinants of monetary policy in Mexico are analysed using conventional reaction functions to evaluate the gradual implementation of inflation targeting (IT) to achieve low and stable rates of inflation. In particular, we look at how the evolution of the inflation, growth and movements in exchange rates have conditioned the decisions of monetary policy taken by the central bank in Mexico for the period 1996 to 2010. Our results show in a systematic way that exchange-rate variations played a major role until 2000 (disinflation period) when IT was explicitly adopted and growth and inflation became the predominant variables with this new monetary regime. We conclude that IT in Mexico has effectively contributed to gain a nominal anchor for monetary policy.

Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://hdl.handle.net/10.1080/09603107.2013.799755 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:apfiec:v:23:y:2013:i:14:p:1205-1213

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAFE20

DOI: 10.1080/09603107.2013.799755

Access Statistics for this article

Applied Financial Economics is currently edited by Anita Phillips

More articles in Applied Financial Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().