1. MÉXICO: CRECIMIENTO ECONÓMICO RESTRINGIDO Y TIPO DE CAMBIO, 1950-2014.
- Author
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Loría, Eduardo
- Subjects
- *
ECONOMIC development , *FOREIGN exchange , *FOREIGN exchange rates , *MONETARY policy ,MEXICAN economy ,MEXICAN economic policy - Abstract
Recent literature has empirically demonstrated that the real exchange rate is essential to explaining the economic evolution of developing countries. It has been empirically proven that the anti-inflation exchange rate policy implemented systematically in Mexico has constituted a major restriction on the country's economic growth, a restriction that has persisted throughout this entire time period, even through different monetary and exchange rate regimes. This paper estimates an svar (1950-2014) that shows how the continuous appreciation of the real exchange rate has curbed Mexico's economic growth capacity and had an impact on other macroeconomic balances. This alone could be considered a highly potent structural macroeconomic reform. [ABSTRACT FROM AUTHOR]
- Published
- 2016
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