Search

This paper aims to examine the determinants of the exchange rate based on the portfolio balance model. Using the Autoregressive Distributed Lag Model (ARDL), we empirically evaluate the effect of private net foreign assets and the traditional factors affecting the exchange rate dynamics in Mexico from 1990-2019. The main results suggest that: i) the portfolio approach constitutes a consistent system to explain the behavior of the exchange rate; ii) an increase in economic activity and interest rate differentials triggers an appreciation of the exchange rate; iii) an increase in the inflation gap and private net foreign assets causes a depreciation. [ABSTRACT FROM AUTHOR]

The objective of this paper is to examine the relationship between fiscal and monetary policy coordination and fiscal multipliers in Argentina, Brazil, Chile, and Mexico. To do so, we first look at the theoretical framework of the New Consensus Macroeconomics (NCM), and then analyze the trends in the four countries for variables including consumption, investment, government spending, and interest rates. Finally, we present an estimate of the spending and monetary multipliers with proxy variables. The contribution of this paper consists of one, showing the inexistence of the crowding out effect, and two, quantifying the multipliers for the aforementioned countries. [ABSTRACT FROM AUTHOR]

In a liquidity trap, the conventional expansionary monetary policy is not an effective way to stimulate economic activity. The orthodox Keynesian model poses a situation of this sort as an extreme case, which has been used to justify the importance of fiscal policy. This paper aims to conduct a qualitative and quantitative analysis (using bibliometric techniques) to explore the recent literature about the liquidity trap. The way in which the number of publications in the period 1973-2015 evolved points to the economic events (Japanese depression in the nineteen-nineties and the 2007-2008 global financial crisis) that revived academic interest in studying this topic. We believe that these results offer a very accurate schematic overview of the current research agenda. [ABSTRACT FROM AUTHOR]

Conventional monetary theory confirms Fisher's hypothesis which assumes that the real rate of interest varies only in the short term, while in the long term money is neutral. Using multivariate time-series models, and specifically VAR and VEC, with variables for Mexico and the United States (US) during the period 1994-2006, this paper studies the dynamic short-term relationship by decomposing the variance and response functions to the stimulus, and the long-term equilibrium relationship between these variables. It is shown that during the period of study the Fisher hypothesis is partly confirmed for the Mexican economy but not for the US economy. For its part, Mexican inflation has a strongly inertial component that lasts four months and accounts for nearly 80% of the inflationary changes. [ABSTRACT FROM AUTHOR]

Copyright of Problemas del Desarrollo. Revista Latinoamericana de Economía is the property of Universidad Nacional Autonoma de Mexico. Instituto de Investigaciones Economicas and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Los autores analizan la tasa de interés en la teoría del economista alemán Karl Marx, con énfasis en su movimiento y causas determinantes. Destacan similitudes entre las aproximaciones de Marx y del economista inglés John Maynard Keynes en lo que se refiere al análisis monetario perteneciente a la tasa de interés, a pesar de sus teorías dispares relativas al sistema capitalista.

Copyright of Problemas del Desarrollo. Revista Latinoamericana de Economía is the property of Universidad Nacional Autonoma de Mexico. Instituto de Investigaciones Economicas and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Problemas del Desarrollo. Revista Latinoamericana de Economía is the property of Universidad Nacional Autonoma de Mexico. Instituto de Investigaciones Economicas and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)