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El papel de la tasa de interés real en el ciclo económico de México

Arturo Antón-Sarabia () and Alan Villegas ()

No DTE 500, Working papers from CIDE, División de Economía

Abstract: This paper presents a small open economy model to study the role of interest rate shocks in an emerging economy like Mexico. The interest rate is decomposed in two terms: an international rate and a country risk premia. First, it is shown that the model is able to explain several stylized facts at business cycle frequencies in Mexico. Next, the model is used to perform a contrafactual exercise. Results suggest that eliminating shocks to the international interest rate would lower output volatility between 4.2 and 5.2 percent, whereas eliminating country risk premia would lower output volatiility between 23 and 29 percent.

Keywords: interest rate; emerging economy; Mexico (search for similar items in EconPapers)
JEL-codes: E43 F41 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2011-03
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Journal Article: El papel de la tasa de interés real en el ciclo económico de México (2013) Downloads
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