Determinación econométrica del tipo de cambio en México

The present research examines the determinants of the nominal exchange rate in Mexico, for the short and long run. Based on a Cointegration model, we conclude that, for the long term, the nominal exchange rate is determined by: a) expectations of the nominal exchange rate; b) prices; c) monetary supply, and; d) productivity. While, for de short run, the nominal exchange rate is determined by: a) risk; expectations on the nominal exchange rate, and; c) prices.