Arbeitspapier
Inflation dynamics under fiscal deficit regime switching in Mexico
We explore the dynamics of inflation, inflation expectations, and seigniorage-financed fiscal deficits in Mexico. To do so, we estimate the model in Sargent, Williams, and Zha (2009) using Mexican CPI inflation data. This model features dual expected inflation equilibriums and regime switching in the mean and variance of the fiscal deficit probability density function. We examine the dynamics of inflation and mean fiscal deficit regimes. In addition, we comment on the extent to which our results match to key economic events. Mexico has successfully stabilized inflation expectations for the past decades, an achievement for which fiscal policy has been fundamental. Nevertheless, this does not preclude the possibility of an increase in the expected price level or a switch to a regime in which inflation and its expectations become unstable.
- Sprache
-
Englisch
- Erschienen in
-
Series: Working Papers ; No. 2018-21
- Klassifikation
-
Wirtschaft
Price Level; Inflation; Deflation
Expectations; Speculations
National Deficit; Surplus
Monetary Policy
Fiscal Policy
Econometrics
- Thema
-
Inflation
Inflation Expectations
Public Deficit
Fiscal Deficit
Regime-Switching
Monetary Policy
Fiscal Policy
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Ramos-Francia, Manuel
García-Verdú, Santiago
Sánchez-Martínez, Manuel
- Ereignis
-
Veröffentlichung
- (wer)
-
Banco de México
- (wo)
-
Ciudad de México
- (wann)
-
2018
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Ramos-Francia, Manuel
- García-Verdú, Santiago
- Sánchez-Martínez, Manuel
- Banco de México
Entstanden
- 2018
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