In this paper we analyze the effect of the implementation of inflation targeting (IT) in Mexico. The analysis focuses on the inflation convergence process between Mexico and the United States, on inflation expectations in Mexico, and on economic growth rates in the Mexican economy. Our results show that neither the fall in Mexican inflation rates nor inflation convergence with the United States can be attributed (only) to the implementation of IT in Mexico. We do not detect any significant effect on economic growth.
Bibliographical noteFunding Information:
carlos A. carrasco is associate researcher and Jesus Ferreiro is associate professor in the Department of Applied Economics V, university of the Basque country uPV/ EHu. This work was supported by the Basque Government (consolidated research Group GIc10/153) and by the Vicerrectorado de Investigación, university of the Basque country uPV/EHu within the program “Personal Investigador en For-mación.” The authors are grateful for useful comments from an anonymous referee. The usual disclaimer applies.
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All Science Journal Classification (ASJC) codes
- Economics and Econometrics