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Article
From Debt Crisis to Tequila Crisis: Inflation Stationarity through Mexico's Turbulent Decades
Applied Economics Letters
  • Tony Caporale, University of Dayton
  • Julia Paxton, Ohio University - Main Campus
Document Type
Article
Publication Date
1-1-2011
Abstract
The volatility of Mexican inflation throughout the 1980s debt crisis and the 1994 tequila crisis provides an interesting backdrop to test for structural breaks and inflation stationarity in a developing country context. By allowing for multiple breaks, four inflationary regimes are identified during the period 1980 to 2004. Initial unit root tests reject stationarity; however, by incorporating structural break analysis, inflation is found to be I(0). The structural break analysis and the stationarity analysis point to monetary and fiscal determinants of inflation.
Inclusive pages
1609-1612
ISBN/ISSN
1350-4851
Comments

Permission documentation is on file.

Publisher
Taylor & Francis
Peer Reviewed
Yes
Citation Information
Tony Caporale and Julia Paxton. "From Debt Crisis to Tequila Crisis: Inflation Stationarity through Mexico's Turbulent Decades" Applied Economics Letters Vol. 18 Iss. 16 (2011)
Available at: http://works.bepress.com/tony_caporale/33/