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International Financial MarketsThe Challenge of Globalization$
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Leonardo Auernheimer

Print publication date: 2003

Print ISBN-13: 9780226032146

Published to Chicago Scholarship Online: February 2013

DOI: 10.7208/chicago/9780226032153.001.0001

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PRINTED FROM CHICAGO SCHOLARSHIP ONLINE (www.chicago.universitypressscholarship.com). (c) Copyright University of Chicago Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CHSO for personal use.date: 04 August 2021

The Experience with a Floating Exchange Rate Regime: The Case of Mexico

The Experience with a Floating Exchange Rate Regime: The Case of Mexico

Chapter:
(p.221) Chapter Six The Experience with a Floating Exchange Rate Regime: The Case of Mexico
Source:
International Financial Markets
Author(s):

Agustín Carstens

Guillermo Ortiz Martinez

Publisher:
University of Chicago Press
DOI:10.7208/chicago/9780226032153.003.0007

This chapter examines the experience of Mexico with a floating exchange rate regime. It reviews Mexico's problematic transition to the floating exchange rate regime during 1994–95 and describe how monetary and exchange rate policy have been conducted under this regime. This chapter analyzes the behavior of inflation, exchange rates and other financial and real variables during the float and suggests that the floating exchange rate regime in Mexico has performed better than conventional wisdom would have led us to believe.

Keywords:   floating exchange rate, Mexico, monetary policy, exchange rate policy, inflation

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