Inflation targeting and economic performance: The case of Mexico

Carlos A. Carrasco, Jesús Ferreiro

Research output: Contribution to journalArticle

9 Citations (Scopus)

Abstract

In the paper we analyze the impact of Inflation Targeting (IT) in Mexico. The objective is to evaluate the impact of the implementation of inflation targeting and full-fledged inflation targeting (FFIT) on the level and the variability of the inflation and the output in the Mexican economy. We conclude that inflation rates had been reduced in Mexico before the introduction of IT and FFIT. In our opinion, the structural reforms, including the Banxico reforms, are the main determinants of the decrease in inflation and its variability. The main impact of IT would have been the lock-in of inflation expectations around a low rate of inflation.
Original languageEnglish
Pages (from-to)675-692
Number of pages18
JournalPanoeconomicus
DOIs
Publication statusPublished - 1 Dec 2011
Externally publishedYes

Fingerprint

Economic performance
Mexico
Inflation targeting
Inflation
Inflation rate
Lock-in
Structural reforms
Inflation expectations

All Science Journal Classification (ASJC) codes

  • Economics, Econometrics and Finance(all)

Cite this

@article{b37c7f8711d74119b1da632c6a440dac,
title = "Inflation targeting and economic performance: The case of Mexico",
abstract = "In the paper we analyze the impact of Inflation Targeting (IT) in Mexico. The objective is to evaluate the impact of the implementation of inflation targeting and full-fledged inflation targeting (FFIT) on the level and the variability of the inflation and the output in the Mexican economy. We conclude that inflation rates had been reduced in Mexico before the introduction of IT and FFIT. In our opinion, the structural reforms, including the Banxico reforms, are the main determinants of the decrease in inflation and its variability. The main impact of IT would have been the lock-in of inflation expectations around a low rate of inflation.",
author = "Carrasco, {Carlos A.} and Jes{\'u}s Ferreiro",
year = "2011",
month = "12",
day = "1",
doi = "10.2298/PAN1105675C",
language = "English",
pages = "675--692",
journal = "Panoeconomicus",
issn = "1452-595X",
publisher = "Savez Ekonomista Vojvodine",

}

Inflation targeting and economic performance: The case of Mexico. / Carrasco, Carlos A.; Ferreiro, Jesús.

In: Panoeconomicus, 01.12.2011, p. 675-692.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Inflation targeting and economic performance: The case of Mexico

AU - Carrasco, Carlos A.

AU - Ferreiro, Jesús

PY - 2011/12/1

Y1 - 2011/12/1

N2 - In the paper we analyze the impact of Inflation Targeting (IT) in Mexico. The objective is to evaluate the impact of the implementation of inflation targeting and full-fledged inflation targeting (FFIT) on the level and the variability of the inflation and the output in the Mexican economy. We conclude that inflation rates had been reduced in Mexico before the introduction of IT and FFIT. In our opinion, the structural reforms, including the Banxico reforms, are the main determinants of the decrease in inflation and its variability. The main impact of IT would have been the lock-in of inflation expectations around a low rate of inflation.

AB - In the paper we analyze the impact of Inflation Targeting (IT) in Mexico. The objective is to evaluate the impact of the implementation of inflation targeting and full-fledged inflation targeting (FFIT) on the level and the variability of the inflation and the output in the Mexican economy. We conclude that inflation rates had been reduced in Mexico before the introduction of IT and FFIT. In our opinion, the structural reforms, including the Banxico reforms, are the main determinants of the decrease in inflation and its variability. The main impact of IT would have been the lock-in of inflation expectations around a low rate of inflation.

U2 - 10.2298/PAN1105675C

DO - 10.2298/PAN1105675C

M3 - Article

SP - 675

EP - 692

JO - Panoeconomicus

JF - Panoeconomicus

SN - 1452-595X

ER -