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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]

  • Carrasco, Carlos A.

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.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 53391.

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Date of creation: Nov 2013
Date of revision:
Handle: RePEc:pra:mprapa:53391
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  1. N. G. Mankiw., 2009. "The Macroeconomist as Scientist and Engineer," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 5.
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  3. Luke B. Willard, 2006. "Does Inflation Targeting Matter? A Reassessment," Working Papers 82, Princeton University, Department of Economics, Center for Economic Policy Studies..
  4. Christopher W. Crowe, 2006. "Testing the Transparency Benefits of Inflation Targeting: Evidence from Private Sector Forecasts," IMF Working Papers 06/289, International Monetary Fund.
  5. Gabriel Cuadra & Horacio Sapriza, 2007. "Fiscal Policy and Default Risk in Emerging Markets," Working Papers 2007-03, Banco de México.
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  8. Alvaro Angeriz & Philip Arestis, 2009. "The consensus view on interest rates and fiscal policy: reality or innocent fraud?," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 31(4), pages 567-586, July.
  9. Carlos A. Carrasco & Jesus Ferreiro, 2013. "Inflation targeting in Mexico," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 35(3), pages 341-372, April.
  10. Malcolm Sawyer, 2009. "Fiscal and interest rate policies in the "new consensus" framework: a different perspective," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 31(4), pages 549-565, July.
  11. Gordon H. Hanson, 2010. "Why Isn't Mexico Rich?," NBER Working Papers 16470, National Bureau of Economic Research, Inc.
  12. 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.
  13. Carlos Capistrán & Manuel Ramos-Francia, 2009. "Inflation Dynamics In Latin America," Contemporary Economic Policy, Western Economic Association International, vol. 27(3), pages 349-362, 07.
  14. Todd E. Clark & Taisuke Nakata, 2008. "Has the behavior of inflation and long-term inflation expectations changed?," Economic Review, Federal Reserve Bank of Kansas City, issue Q I, pages 17-50.
  15. Carlos Capistrán & Manuel Ramos-Francia, 2010. "Does Inflation Targeting Affect the Dispersion of Inflation Expectations?," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 42(1), pages 113-134, 02.
  16. 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.
  17. Demirel, Ufuk Devrim, 2010. "Macroeconomic stabilization in developing economies: Are optimal policies procyclical?," European Economic Review, Elsevier, vol. 54(3), pages 409-428, April.
  18. Olivier J. Blanchard, 2008. "The State of Macro," NBER Working Papers 14259, National Bureau of Economic Research, Inc.
  19. Marvin Goodfriend, 2007. "How the World Achieved Consensus on Monetary Policy," NBER Working Papers 13580, National Bureau of Economic Research, Inc.
  20. Noriega, Antonio & Fontenla, Matías, 2007. "La infraestructura y el crecimiento económico en México," El Trimestre Económico, Fondo de Cultura Económica, vol. 0(296), pages 885-900, octubre-d.
  21. 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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