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Keywords:Peso, Mexican 

Working Paper
Convertibility risk, default risk, and the Mexdollar anomaly

Rogers (l992a,b) I put forth the convertibility risk hypothesis in order to explain the anomalous n~gative relationship between the expected rate of Mexican peso depreciation and the ratio of Mexdollars to peso denominated demand deposits. Recently, Gruben and Welch (1994) examine the effect of deteriorating bank loan quality on the variables I consider. Using a cointegration framework, the authors find (i) a negative relationship between non-performing loans and the dollarization ratio and (ii) the conventional positive relationship between expected peso depreciation and dollarization. The ...
International Finance Discussion Papers , Paper 495

Working Paper
The mirage of fixed exchange rates

This paper discusses the profound difficulties of maintaining fixed exchange rates in a world of expanding global capital markets. Contrary to popular wisdom, industrialized-country monetary authorities easily have the resources to defend exchange parities against virtually any private speculative attack. But if their commitment to use those resources lacks credibility with markets, the costs to the broader economy of defending an exchange-rate peg can be very high. The dynamic interplay between credibility and commitment is illustrated by the 1992 Swedish and British crises.
Working Papers in Applied Economic Theory , Paper 95-08

Conference Paper
Real exchange rates and investment booms in Mexico

Proceedings

Journal Article
The giant sucking sound: did NAFTA devour the Mexican peso?

Five years of economic reforms had made Mexico a model for other developing nations by the end of 1993, when Mexico was preparing to enter into the North American Free Trade Agreement (NAFTA) with Canada and the United States. But less than a year later, in December 1994, Mexico experienced a severe financial crisis, forcing it to borrow from the IMF and the United States. Some commentators blamed the enactment of NAFTA for the devaluation of the peso and the ensuing economic turmoil in Mexico, with some calling for renegotiation or even repeal of the agreement. Author Christopher J. Neely ...
Review , Volume 78 , Issue Jul , Pages 33-48

Working Paper
Capital flows and macroeconomic management: tequila lessons

Working Papers in Applied Economic Theory , Paper 96-02

Journal Article
The banking sector rescue in Mexico

In Mexico the December 1994 peso devaluation provoked a profound economic downturn in that country and revealed a fragile banking sector. Fearful that the financial system would collapse under a rising level of past due loans, the Mexican government mounted a rescue of the banking sector by intervening in the daily operations of some problem banks while establishing a series of capitalization and restructuring programs available to all banks. ; This article examines Mexico's bank rescue efforts (1995-98) with a particular focus on the role of the deposit insurance fund, the Bank Fund for the ...
Economic Review , Volume 84 , Issue Q3 , Pages 14-29

Journal Article
How much will the global financial storm hurt Mexico?

The credibility earned by prudent policymaking over the past decade should help Mexico weather the current financial storm without devastating effects on real economic activity.
Southwest Economy , Issue Nov , Pages 10-13

Journal Article
Regional effects of the peso devaluation

FRBSF Economic Letter

Journal Article
New boom on the border

FRBSF Economic Letter

Journal Article
Mexico and the peso

FRBSF Economic Letter

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