EconPapers    
Economics at your fingertips  
 

Inflation and Exchange Rate Regimes in Mexico

Carmen Li, A. Philippopoulos and Elias Tzavalis

Discussion Papers from University of Exeter, Department of Economics

Abstract: We present a version of the exchange-rate regime model of inflation. We then use quarterly data from Mexico during 1946.I-1995.I to test and estimate a simultaneous equation model for wage inflation, price inflation and industrial produciton. In doing so, we respect the Lucas critique and take into account the statistical properties of the data. The main empirical finding is that after the fall of the fixed exchange rate regime in 1976, there is a Barro-Gordon type inflation bias due to the inability of policy-makers to commit to low inflation.

Keywords: EXCHANGE RATE; INFLATION; EMPLOYMENT; MEXICO (search for similar items in EconPapers)
JEL-codes: E3 E5 F3 (search for similar items in EconPapers)
Pages: 23 pages
Date: 1998
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Inflation and Exchange Rate Regimes in Mexico (2000) Downloads
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:exe:wpaper:9801

Access Statistics for this paper

More papers in Discussion Papers from University of Exeter, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Sebastian Kripfganz ().

 
Page updated 2025-03-19
Handle: RePEc:exe:wpaper:9801