Should Mexico Adopt the US Dollar as Legal Tender? Volume I: The Issues Determining the Desirability of Dollar Adoption
نویسندگان
چکیده
This chapter will present an empirical analysis of the type and source of real shocks to the Mexican economy. In particular, it will evaluate the following questions. How important are shocks that originate as exchange rate changes due to swings in market sentiment independent of the economic fundamentals? That is, how important is “excess volatility”? How important are shocks that originate as movements in “real” exogenous variables (terms of trade shocks, world interest rate shocks) or domestic policy shocks? What is the magnitude of intra-country shocks as opposed to inter-country shocks?
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