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Inflation and Growth: Exchange Rate Alternatives for Mexico

Guillermo Ortiz and Leopoldo Solís

Chapter 10 in Exchange Rate Rules, 1981, pp 327-350 from Palgrave Macmillan

Abstract: Abstract The fast recovery of the Mexican economy from the post-devaluation recession of 1976–7 has been accompanied by a good dose of inflationary pressures. If these pressures continue, the equilibrium value of the peso in terms of purchasing power might be endangered, unless appropriate policy measures are taken. The issue is particularly relevant now that important oil revenues are expected in the near future, thus presenting the possibility of financing an overvalued exchange rate with all its distorting effects.

Keywords: Exchange Rate; Banking System; Exchange Control; Monetary Aggregate; Loan Rate (search for similar items in EconPapers)
Date: 1981
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DOI: 10.1007/978-1-349-05166-3_16

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