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Author/Editor:
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Sosa, Sebastian
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Publication Date:
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April 01, 2008
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Electronic Access:
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Free Full text
(PDF file size is 384KB).
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.
The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
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Summary:
This paper examines the relative importance of external shocks as sources of business cycle fluctuations in Mexico, and identifies the dynamic responses of domestic output to foreign disturbances. Using a VAR model with block exogeneity restrictions, it finds that U.S. shocks explain a large share of Mexico's macroeconomic fluctuations after NAFTA. This partly reflects greater trade integration-but also Mexico's "Great Moderation," as the country escaped its former pattern of macro-financial crises. In this period, Mexico's output fluctuations have been closely synchronized with the U.S. cycle, with a large and rapid impact of U.S. shocks on Mexican growth.
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Order a print copy
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Series:
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Working Paper No. 08/100
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Subject(s):
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Mexico | Business cycles | External shocks | United States | Economic models
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Author's Keyword(s):
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Mexico | United States | business cycles | external shocks | spillovers | VAR |
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English
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Publication Date:
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April 01, 2008
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Format:
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Paper
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Stock No:
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WPIEA2008100
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Pages:
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31
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Price:
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US$18.00 )
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Please address any questions about this title to
publications@imf.org
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