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What Is the Mexican Central Bank Aiming At?

  • Guerrero, Carlos


    (Tecnológico de Monterrey, Campus Ciudad de México)

Although the use of the plutocratic index is, perhaps, an historical convention, it constitutes a misleading target. Our aim is to construct alternative CPI’s for Mexico using the median of the expenditure distribution. Additionally, considering that 42.6% of Mexican people live in poverty (54.7% in rural and 35.6% in urban areas, figures for 2006), our alternative CPI’s distinguish between areas. In the final part of this paper, the use of a single goal by the Mexican monetary authority is criticized.

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Paper provided by Tecnológico de Monterrey, Campus Ciudad de México in its series EGAP Working Papers with number 2008-05.

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Date of creation: Aug 2008
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Handle: RePEc:ega:docume:200805
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