Abstract

VAZQUEZ MUNOZ, Juan Alberto. Banco de México’s independence, growth and income distribution. Inv. Econ [online]. 2020, vol.79, n.312, pp.5-33.  Epub Dec 28, 2020. ISSN 0185-1667.  https://doi.org/10.22201/fe.01851667p.2020.312.75370.

On August 1993 the Banco de México was granted autonomy and charged with the objective of maintaining a low and stable inflation rate (π). This paper shows that: a) the growth rate (g) of the Mexican economy exhibits a non-linear relationship (an inverted U-shape) with π, and that the same is true of the growth rates of the manufacturing (m), the financial services and the insurance (sf) sectors; b) the π that optimizes g, m and sf is different for each case, being lower and close to the inflation target for the case of sf; c) the growth rate of the nominal remuneration has worked as an inflation anchor and has led to a regressive redistribution of income; and d) the achievement of a low and stable π has been accompanied by high real interest rates, which has depressed both investment and the growth rate of labor productivity.

Keywords : Bank of Mexico; monetary policy; inflation targeting; growth; remunerations; E31; E52; E58; O23; O43.

        · abstract in Spanish     · text in Spanish     · Spanish ( pdf )