Front Matter Page
Mexico
SELECTED ISSUES
November 2016
This Selected Issues paper on Mexico was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with Mexico. It is based on the information available at the time it was completed on November 4, 2016.
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© 2016 International Monetary Fund
Front Matter Page
SELECTED ISSUES
November 4, 2016
Approved By
Robert Rennhack
Prepared by Alexander Klemm, Chang Ma, Damien Puy, and Fabian Valencia
Contents
THE TRANSMISSION OF MONETARY POLICY RATES TO LENDING AND DEPOSIT RATES
A. Introduction
B. Data and Methodology
C. Results
References
TABLES
1. Pass-Through of Policy Rates
2. Pass-Through of Policy rates with Controls
GLOBAL CONDITIONS AND CAPITAL FLOWS TO EMERGING MARKETS: HOW SENSITIVE IS MEXICO?
A. Introduction
B. Empirical methodology
C. Key Findings
D. What drives the common dynamics in bond flows?
E. Why is Mexico so sensitive?
F. Conclusion and Policy Implications
References
FIGURES
1. Portfolio Liabilities in Mexico and Foreign Investor Base
APPENDICES
I. Sample of Countries
II. Regression Results - EM Bond Factor
WELFARE GAINS FROM HEDGING OIL-PRICE RISK
A. Introduction
B. Model Setup
C. Welfare gains and channels
D. Design Considerations
E. Conclusions
References
APPENDICES
I. Model Structure
II. Calibration
EVALUATING THE STANCE OF MONETARY POLICY
A. Introduction
B. Estimated Taylor Rule
C. The neutral interest rate
D. Conclusions
References