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The Taylor Rule And The Exchange Rate In Mexico (An Empirical Appraisal)

Author

Listed:
  • Luis Miguel Galindo

    (Universidad Nacional Autónoma de México)

  • Horacio Catalán

    (Universidad Nacional Autónoma de México)

Abstract

El objetivo de este trabajo es analizar la validez de la regla de Taylor, incluyendo el tipo de cambio real, para el caso de la economía mexicana. La evidencia empírica indica que una regla simple describe apropiadamente la función de reacción del Banco de México. La inclusión del tipo de cambio real es estadísticamente significativo de modo que una apreciación real del peso mexicano induce una política monetaria más flexible. Sin embargo, la inclusión del tipo de cambio real mejora sólo marginalmente los resultados de una regla de Taylor para una economía cerrada.

Suggested Citation

  • Luis Miguel Galindo & Horacio Catalán, 2005. "The Taylor Rule And The Exchange Rate In Mexico (An Empirical Appraisal)," 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. 4(2), pages 115-125, Junio 200.
    • Handle: RePEc:imx:journl:v:4:y:2005:i:2:p:115-125
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    More about this item

    Keywords

    Taylor's rule; Monetary Policy; Real Exchange Rate;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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