Interest Rates in Mexico
AbstractThis paper explores how interest rates on domestic financial assets in Mexico are linked to expectations of exchange rate changes and to perceptions about the default risks contained in Mexico’s external debt. It is shown that the interest rate differentials between peso- and U.S. dollar-denominated domestic assets reflected some concerns about the exchange rate policy during the period under study. In addition, the evidence suggests that the interest rate on a U.S. dollar-denominated Mexican domestic asset is linked (i.e., cointegrated) to the yield implicit in the secondary market price for external debt issued by Mexico.
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Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 91/12.
Date of creation: 01 Jan 1991
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- Kaminsky, Graciela L. & Leiderman, Leonardo, 1998.
"High real interest rates in the aftermath of disinflation: is it a lack of credibility?,"
Journal of Development Economics, Elsevier,
Elsevier, vol. 55(1), pages 191-214, February.
- Kaminsky, G.L. & Leiderman, L., 1996. "High Real Interest Rates in the Aftermath of Disinflation: Is It a Lack of Credibility," Papers, Tel Aviv 8-96, Tel Aviv.
- Graciela L. Kaminsky & Leonardo Leiderman, 1996. "High real interest rates in the aftermath of disinflation: is it a lack of credibility?," International Finance Discussion Papers, Board of Governors of the Federal Reserve System (U.S.) 543, Board of Governors of the Federal Reserve System (U.S.).
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