Efectos de variaciones en el tipo de cambio sobre el nivel general de precios: México 1980-2011
AbstractThe present paper estimate for Mexico coefficient pass-through of the type change on the general level of prices for three periods: 1980q1-1990q4; 1991q1-2000q4 and 2001q1-2011q4. From an empirical analysis, we quantify the evolution of the coefficient of short and long term as well as its process of adjustment over time. We find a drop in the coefficient of pass-through after the decade of the 1980s. However, the results do not suggest that the decline observed in the coefficient may be considered as permanent. If the level of the inflation rate and its persistence rise in the future, we will observe an increase in the value of the coefficient of pass-through, which in turn would give new impetus to inflationary pressures. These results lead us to conclude that the Bank of Mexico has control on the nominal exchange rate but not on the real exchange rate.
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Bibliographic InfoPaper provided by El Colegio de México, Centro de Estudios Económicos in its series Serie documentos de trabajo del Centro de Estudios Económicos with number 2012-13.
Date of creation: May 2012
Date of revision:
pass-through; inflation; exchange rate; real exchange rate; Bank of Mexico;
Find related papers by JEL classification:
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
- E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
- F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
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