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Exchange Rate Pass-Through to Prices in Mexico: A Study of the Main Border and Non-Border Cities

Author

Listed:
  • Eduardo Saucedo

    (Tecnológico de Monterrey, México)

  • Jorge Gonzalez

    (Instituto Econofinanzas, México)

Abstract

Se estudia el efecto traspaso del tipo de cambio en el Índice de Precios al Consumidor (INPC) en áreas metropolitanas fronterizas y 27 no-fronterizas de México. El periodo abarca de enero 2002 a diciembre 2019 y se utilizan datos mensuales. Se emplea un modelo de vectores autoregresivos (VAR), que incluye empleo formal a nivel ciudad como proxy del desempeño económico, tasas de interés, tipo de cambio nominal, índices de precios de cada ciudad analizada, el índice de precios en USA, precios de commodities de energía y variables de control como el peso de los servicios y la participación de empresas grandes en el empleo de cada ciudad. Funciones de impulso respuesta son construidas. Los resultados para 2002-2016 indican que el tipo de cambio afecta en mayor intensidad a las ciudades fronterizas. Se incluyen diversos argumentos que justifican dichos resultados. Se encuentra adicionalmente, que los valores de traspaso aumentan en forma general cuando se incluye 2017-2019, periodo donde en enero de 2017 comenzaron importantes variaciones en el precio de la gasolina, previo a su liberalizacion en diciembre de 2017.

Suggested Citation

  • Eduardo Saucedo & Jorge Gonzalez, 2021. "Exchange Rate Pass-Through to Prices in Mexico: A Study of the Main Border and Non-Border Cities," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 16(2), pages 1-24, Abril - J.
    • Handle: RePEc:imx:journl:v:16:y:2021:i:2:a:5
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    References listed on IDEAS

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    More about this item

    Keywords

    exchange rate pass-through; inflation; Mexico; impulse response function.;
    All these keywords.

    JEL classification:

    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • F30 - International Economics - - International Finance - - - General
    • F31 - International Economics - - International Finance - - - Foreign Exchange

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