Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/129972
Authors: 
Aguilar-Argaez, Ana María
Cuadra, Gabriel
Ramírez-Bulos, Claudia
Sámano, Daniel
Year of Publication: 
2014
Series/Report no.: 
Working Papers, Banco de México 2014-20
Abstract (Translated): 
In order to create an environment of low and stable inflation in Mexico it has been necessary to generate a framework for the conduction of monetary policy focused on price stability along with fiscal discipline. This paper describes some structural achievements to control inflation that have been attained in Mexico. In addition, it shows empirical evidence in favor of the anchoring of inflation expectations, particularly those for the medium and long term, being recently strengthened. Considering three episodes, within the period 2004-2012, in which inflation was subject to different supply shocks, it finds that during the episode in 2012 inflation expectations showed greater stability. Results show that the response from inflation expectations to supply shocks has diminished over time, up to values that are not significantly different from zero. This suggests a strengthening of the credibility of the Bank of Mexico's commitment to price stability.
Subjects: 
inflation expectations
anchoring inflation expectations
cost-push shocks
JEL: 
E52
E58
E65
Document Type: 
Working Paper
Appears in Collections:

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.