Inflation Targeting and Economic Performance: The Case of Mexico

Authors

  • Carlos A. Carrasco University of the Basque Country, Department of Applied Economics V, Spain
  • Jesús Ferreiro University of the Basque Country, Department of Applied Economics V, Spain

DOI:

https://doi.org/10.2298/PAN1105675C

Keywords:

Inflation, Mexico, Inflation targeting

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.

Key words: Inflation, Mexico, Inflation targeting.
JEL: E31, E52, E58, N16.

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Published

2011-10-10

How to Cite

Carrasco, C. A., & Ferreiro, J. (2011). Inflation Targeting and Economic Performance: The Case of Mexico. Panoeconomicus, 58(5), 675–692. https://doi.org/10.2298/PAN1105675C

Issue

Vol. 58 No. 5 (2011): 8th International Conference Developments in Economic Theory and Policy, Bilbao (Spain)

Section

Original scientific paper

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