MONETARY POLICY IN MEXICO. SVAR ANALYSIS WITH EXCLUSION RESTRICTIONS

This study evaluates the effects of monetary policy in Mexico during the period 2001-2020 using a Structural Vector Autoregressive (SVAR) approach with exclusion restrictions in the contemporaneous effects matrix. The study contributes to the existing literature in the country by comparing the resul...

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Detalles Bibliográficos
Autores: López Mares, Jesús Eduardo, Ocegueda Hernández, Juan Manuel
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2024
País:México
Institución:UNIVERSIDAD NACIONAL AUTÓNOMA DE MÉXICO
Repositorio:Investigación Económica
Idioma:español
OAI Identifier:oai:ojs.pkp.sfu.ca:article/86886
Acceso en línea:https://www.revistas.unam.mx/index.php/rie/article/view/86886
Access Level:acceso abierto
Palabra clave:Monetary policy
SVAR
policy rules
política monetaria
reglas de política
Descripción
Sumario:This study evaluates the effects of monetary policy in Mexico during the period 2001-2020 using a Structural Vector Autoregressive (SVAR) approach with exclusion restrictions in the contemporaneous effects matrix. The study contributes to the existing literature in the country by comparing the results of models with both recursive and non-recursive identifications, with an emphasis on recovering the systematic component of the Central Bank. It was found that non-recursive models that incorporate inflation expectations or the exchange rate into the original Taylor type rule eliminate the price puzzle. However, only identifications allowing for a bidirectional reaction between the exchange rate and interest rate avoid the exchange rate puzzle. Finally, recursive identifications produce inconsistent results with canonical neo-Keynesian models.