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Did the Bank of Mexico follow a systematic behaviour in its transition to an inflation targeting regime?

Garcia-Iglesias, Jesus M., Muñoz Torres, Rebeca, Saridakis, G. (2013) Did the Bank of Mexico follow a systematic behaviour in its transition to an inflation targeting regime? Applied Financial Economics, 23 (14). pp. 1205-1213. ISSN 0960-3107. (doi:10.1080/09603107.2013.799755) (The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided)

The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided. (Contact us about this Publication)
Official URL
http://doi.org/10.1080/09603107.2013.799755

Abstract

The main determinants of monetary policy in Mexico are analysed using conventional reaction functions to evaluate the gradual implementation of inflation targeting (IT) to achieve low and stable rates of inflation. In particular, we look at how the evolution of the inflation, growth and movements in exchange rates have conditioned the decisions of monetary policy taken by the central bank in Mexico for the period 1996 to 2010. Our results show in a systematic way that exchange-rate variations played a major role until 2000 (disinflation period) when IT was explicitly adopted and growth and inflation became the predominant variables with this new monetary regime. We conclude that IT in Mexico has effectively contributed to gain a nominal anchor for monetary policy.

Item Type: Article
DOI/Identification number: 10.1080/09603107.2013.799755
Uncontrolled keywords: monetary policy rules, inflation targeting, exchange rates, emerging economies
Subjects: H Social Sciences
H Social Sciences > H Social Sciences (General)
Divisions: Faculties > Social Sciences > Kent Business School
Faculties > Social Sciences > Kent Business School > International Business and Strategy
Depositing User: George Saridakis
Date Deposited: 12 Feb 2018 14:29 UTC
Last Modified: 29 May 2019 20:15 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/65997 (The current URI for this page, for reference purposes)
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