Mexico: Selected Issues
August 13, 2004
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This Selected Issues paper analyzes reserve adequacy in Mexico. Reserve adequacy has been of renewed interest, as the authorities have introduced a new rules-based mechanism of U.S. dollar sales to reduce the rate of reserve accumulation. The paper examines the recent experience with Mexico’s fiscal management tools in light of the need for further consolidation. It reviews evidence on the cyclical behavior of fiscal policy in Mexico, finding that it has generally been procyclical since the early 1990s. The paper also examines the determinants of inflation in Mexico since 1997.
Subject: Central banks, Currencies, Dollarization, Exchange rates, Foreign exchange, Inflation, Monetary policy, Prices, Reserves accumulation, Revenue administration
Keywords: adequacy ratio, Africa, CR, dollar, dollar movement, dollar rate, Dollarization, Euro rate, Europe, Exchange rates, Global, Inflation, ISCR, North America, price, Reserves accumulation, U.S. dollar, Western Hemisphere
Pages:
86
Volume:
2004
DOI:
Issue:
250
Series:
Country Report No. 2004/250
Stock No:
1MEXEA0012004
ISBN:
9781451955613
ISSN:
1934-7685
