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Inflation and Growth: Exchange Rate Alternatives for Mexico

In: Exchange Rate Rules

Author

Listed:
  • Guillermo Ortiz
  • Leopoldo Solís

Abstract

The fast recovery of the Mexican economy from the post-devaluation recession of 1976–7 has been accompanied by a good dose of inflationary pressures. If these pressures continue, the equilibrium value of the peso in terms of purchasing power might be endangered, unless appropriate policy measures are taken. The issue is particularly relevant now that important oil revenues are expected in the near future, thus presenting the possibility of financing an overvalued exchange rate with all its distorting effects.

Suggested Citation

  • Guillermo Ortiz & Leopoldo Solís, 1981. "Inflation and Growth: Exchange Rate Alternatives for Mexico," Palgrave Macmillan Books, in: John Williamson (ed.), Exchange Rate Rules, chapter 10, pages 327-350, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-1-349-05166-3_16
    DOI: 10.1007/978-1-349-05166-3_16
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    Cited by:

    1. Gutierrez-Camara, J.L. & Vaubel, Roland, 1981. "International Shifts in the demand for money in a small monetarist model," Kiel Working Papers 121, Kiel Institute for the World Economy (IfW Kiel).

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