Concepts and Measurements of Economic Interdependence: The Case of the United States and Mexico (original) (raw)
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Macroeconomic Interdependence and Exchange Rate Regimes in Latin America
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This paper approaches the macroeconomic mechanisms of shock transmission among Latin American largest economies (Argentina, Brazil, Chile and Mexico) in the 90s. We attempt to show that the heterogeneity of exchange rate regimes among those economies has not implied their national autonomy insofar as monetary policy. As a policy conclusion, we argue that those economies should jointly search for national foreign-liquidity cushions against region-level shocks.
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Journal of Post Keynesian Economics, 2003
We argue that the main constraint for the Mexican economy to grow remains inside the structural deficit of the current account as well as in the real exchange rate level. An annual structural econometric model (1970-99) (estimated through weighted two-stage least squares) is estimated to identify the determinants of the four balances that constitute the current account balance. The main objective is to detect only long-run relationships and, consequently, to analyze the sensibility of the overall system to the exchange rate. By doing this, we enforce the introspective features of Thirlwall's Law through what may be called the "extended exchange rate Thirlwall's Law." A detailed analysis of the joint residuals coming out from the structural estimations are performed in order to demonstrate that all the variables involved in the behavioral equations are cointegrated, since they are all "white noise" and normally distributed.