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

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 c...

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Detalles Bibliográficos
Autores principales: Abraham E. Vela, Julio A. Santaella
Formato: Artículo científico
Publicado: Centro de Investigación y Docencia Económicas, A.C. 2005
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Acceso en línea:http://www.redalyc.org/articulo.oa?id=32314101
http://biblioteca.clacso.edu.ar/gsdl/cgi-bin/library.cgi?a=d&c=mx/mx-010&d=32314101oai
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Sumario: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.