Cover IMF Working Papers
Buy Book in Print
The 1987 Mexican Disinflation Program: An Exchange-Rate-Based Stabilization?
Author:
Julio A. Santaella null

Search for other papers by Julio A. Santaella in
Current site
Google Scholar Close
and
Mr. Abraham Everardo Vela null

Search for other papers by Mr. Abraham Everardo Vela in
Current site
Google Scholar Close
Series:
IMF Working Papers
Volume/Issue:
Volume 1996: Issue 024
Language:
English
Publication Date:
01 Mar 1996
DOI:
https://doi.org/10.5089/9781451844092.001
ISBN:
9781451844092
ISSN:
1018-5941
Pages:
52
Keywords:
WP; exchange rate-based-stabilization; price; inflation inertia; managed float; price shock; relative-price variability; durable goods; resource allocation; chronic-inflation economy; price level; inflation coefficient; twelve-month rate of inflation; Exchange rates; Inflation; Exchange rate arrangements; Business cycles; Nominal anchors
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (2.5 MB) Download Epub
We examine whether Mexico’s disinflation experience during 1987-94 fits a widely accepted set of stylized facts of exchange rate-based stabilization (ERBS), and relate it to theories put forward to account for the boom-recession business cycle associated with ERBS. A cursory look at Mexican data shows that the experience fits quite closely the theoretical predictions and the stylized facts of ERBS. However, the paper shows that there were some important differences and peculiarities of the Mexican case that deserve further study, especially regarding the role of the nominal anchor and the nature of the business cycle.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund