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El Nuevo Consenso Macroeconómico y la mediocridad del crecimiento económico en México
[New Consensus Macroeconomics and the mediocrity of economic growth in Mexico]

Author

Listed:
  • Carrasco, Carlos A.

Abstract

In this paper we study the theoretical model and its application as economic policy of the New Consensus Macroeconomics in Mexico. We focus in fiscal and monetary policy in the last 30 years. We critically revise empirical economic literature on the effects of the process of adjustment and reforms in Mexican economy after the burst of the debt crisis. Finally, we analyse the explanatory hypothesis about the low growth of Mexican economy related to the weakness of property right protection. Our main conclusion states that, given the preferences of price stability imposed by the central bank and the disdain of fiscal policy in areas such as public investment, agents do not invest due to the deterioration of expectations of future growth of the Mexican economy and low expected returns to investment.

Suggested Citation

  • Carrasco, Carlos A., 2013. "El Nuevo Consenso Macroeconómico y la mediocridad del crecimiento económico en México
    [New Consensus Macroeconomics and the mediocrity of economic growth in Mexico]
    ," MPRA Paper 53391, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:53391
    as

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    File URL: https://mpra.ub.uni-muenchen.de/53391/1/MPRA_paper_53391.pdf
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    References listed on IDEAS

    as
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    5. Carlos A. Carrasco & Jesus Ferreiro, 2013. "Inflation targeting and inflation expectations in Mexico," Applied Economics, Taylor & Francis Journals, vol. 45(23), pages 3295-3304, August.
    6. Gordon H. Hanson, 2010. "Why Isn't Mexico Rich?," Journal of Economic Literature, American Economic Association, vol. 48(4), pages 987-1004, December.
    7. Crowe, Christopher, 2010. "Testing the transparency benefits of inflation targeting: Evidence from private sector forecasts," Journal of Monetary Economics, Elsevier, vol. 57(2), pages 226-232, March.
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    12. Brito, Ricardo D. & Bystedt, Brianne, 2010. "Inflation targeting in emerging economies: Panel evidence," Journal of Development Economics, Elsevier, vol. 91(2), pages 198-210, March.
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    18. Carlos A. Carrasco & Jesús Ferreiro, 2011. "Inflation Targeting and Economic Performance: The Case of Mexico," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 58(5), pages 675-692, December.
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    More about this item

    Keywords

    Mexico; macroeconomic policy; New Consensus Macroeconomics; economic growth;

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • N16 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Latin America; Caribbean

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