IDEAS home Printed from https://ideas.repec.org/a/emc/ecomex/v9y2000i1p5-21.html
   My bibliography  Save this article

La enfermedad mexicana y los dilemas de la política económica

Author

Listed:
  • Carlos Alberto Ibarra

    () (Departamento de Economía. Universidad de las Américas-Puebla. Puebla, Pue. Mexico)

Abstract

We analyze some of the effects of the peso’s real appreciation on the output-inflation policy dilemma. Thanks to the appreciation, it is possible to achieve simultaneously a higher real wage and a lower inflation rate without need of output loss. After the capital inflows that support the appreciation stop, though, the policy dilemma is stronger than initially, because of a rise in the country’s stock of foreign debt. We discuss the difficulties involved in trying to offset this effect through variations in the domestic interest rate and show that the positive influence from an improvement in inflation expectations is transitory. In contrast, higher levels of labor productivity tend to improve the inflation-unemployment trade-off permanently.

Suggested Citation

  • Carlos Alberto Ibarra, 2000. "La enfermedad mexicana y los dilemas de la política económica," Economía Mexicana NUEVA ÉPOCA, , vol. 0(1), pages 5-21, January-J.
  • Handle: RePEc:emc:ecomex:v:9:y:2000:i:1:p:5-21
    as

    Download full text from publisher

    File URL: http://www.economiamexicana.cide.edu/num_anteriores/IX-1/01_CARLOS_A_IBARRA_5-21.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Law, Peter J, 1995. "Tighter Average Revenue Regulation Can Reduce Consumer Welfare," Journal of Industrial Economics, Wiley Blackwell, vol. 43(4), pages 399-404, December.
    2. David E. M. Sappington, 1991. "Incentives in Principal-Agent Relationships," Journal of Economic Perspectives, American Economic Association, vol. 5(2), pages 45-66, Spring.
    3. Bradley, Ian & Price, Catherine, 1988. "The Economic Regulation of Private Industries by Price Constraints," Journal of Industrial Economics, Wiley Blackwell, vol. 37(1), pages 99-106, September.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:emc:ecomex:v:9:y:2000:i:1:p:5-21. 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). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.