La enfermedad mexicana y los dilemas de la política económica

Content Provider	Semantic Scholar
Author	Ibarra, Carlos Alfonso Ledesma
Copyright Year	2000
Abstract	We analyze some of the effects of the peso’s real appreciation on the output-inflation policy dilemma. Thanks to the appreciation, it is possible to achieve simultaneously a higher real wage and a lower inflation rate without need of output loss. After the capital inflows that support the appreciation stop, though, the policy dilemma is stronger than initially, because of a rise in the country’s stock of foreign debt. We discuss the difficulties involved in trying to offset this effect through variations in the domestic interest rate and show that the positive influence from an improvement in inflation expectations is transitory. In contrast, higher levels of labor productivity tend to improve the inflation-unemployment trade-off permanently.
Starting Page	5
Ending Page	21
Page Count	17
File Format	PDF HTM / HTML
Volume Number	9
Alternate Webpage(s)	http://www.economiamexicana.cide.edu/num_anteriores/IX-1/01_CARLOS_A_IBARRA_5-21.pdf
Language	English
Access Restriction	Open
Content Type	Text
Resource Type	Article