Inflation targeting and inflation expectations in Mexico

Carlos A. Carrasco, Jesus Ferreiro

Producción científicarevisión exhaustiva

11 Citas (Scopus)


In this article we analyse inflation expectations in Mexico. After a review of the theoretical and empirical literature, we apply unit root, normality and cointegration tests to the data provided by Banco de México (Banxico) in the Survey on the Expectations of the Private Sector Economics Specialists. Our results reject the null hypothesis of normality for inflation expectations over the period 2004:01-2011:12. The exchange rate has become one of the most relevant variables in the transmission mechanism of monetary policy in a small open economy. In this regard, we show the existence of a long-run relationship between nominal exchange rate and interest rate where inflation expectations matter for long-term dynamics.

Idioma originalEnglish
Páginas (desde-hasta)3295-3304
Número de páginas10
PublicaciónApplied Economics
EstadoPublished - 1 ene 2013
Publicado de forma externa

All Science Journal Classification (ASJC) codes

  • Economía y econometría


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