Advanced Search
MyIDEAS: Login to save this article or follow this journal

Shifting Nominal Anchors: The Experience of Mexico

Contents:

Author Info

  • Leonardo Leiderman

    (Professor of Economies, University of Tel Aviv. Tel Aviv, Israel.)

  • Nissan Liviatan

    (Professor of Economies, Hebrew University. Jerusalem, Israel.)

  • Alfredo Thorne

    (Vice President, J. P. Morgan. New York, NY. USA.)

Registered author(s):

    Abstract

    In the mid-1980’s Mexico successfully brought down its high rate of inflation by using the exchange rate as nominal anchor in combination with strict fiscal discipline, tight monetary policy, and incomes policy. This paper discusses the role of exchange rate policy as nominal anchor in Mexico and develops the inflation target as the monetary framework for anchoring prices. It also describes how Mexico is applying this frame work while shifting to a more flexible exchange regime and discusses the role of the newly independent central bank and monetary policy in keeping inflation under control while shifting nominal anchors. This paper describes the situations as seen in early 1994, and makes no attempt to describe the events that led to the 1994 crisis and its aftermath.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.economiamexicana.cide.edu/num_anteriores/IV-2/01_LEIDERMAN_197-237.pdf
    Download Restriction: no

    Bibliographic Info

    Article provided by in its journal Economia Mexicana NUEVA EPOCA.

    Volume (Year): IV (1995)
    Issue (Month): 2 (July-December)
    Pages: 197-237

    as in new window
    Handle: RePEc:emc:ecomex:v:4:y:1995:i:2:p:197-237

    Contact details of provider:

    Related research

    Keywords:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:emc:ecomex:v:4:y:1995:i:2:p:197-237. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ricardo Tiscareño).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.