Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/238674 
Year of Publication: 
2021
Series/Report no.: 
Working Paper No. 984
Publisher: 
Levy Economics Institute of Bard College, Annandale-on-Hudson, NY
Abstract: 
This paper presents empirical models of Mexican government bond (MGB) yields based on monthly macroeconomic data. The current short-term interest rate has a decisive influence on MGB yields, after controlling for inflation and growth in industrial production. John Maynard Keynes claimed that government bond yields move in lockstep with the short-term interest rate. The models presented in the paper show that Keynes's claim holds for MGB yields. This has important policy implications for Mexico. The empirical findings of the paper are also relevant for ongoing debates in macroeconomics.
Subjects: 
Mexican Government Bonds
Long-Term Interest Rate
Short-Term InterestRate
Monetary Policy
Banco de México (BdM)
Banxico
JEL: 
E43
E50
E58
E60
G10
G12
Document Type: 
Working Paper

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