Premium
MACROECONOMIC LINKAGES IN MEXICO
Author(s) -
López Julio,
Sanchez Armando,
Spanos Aris
Publication year - 2011
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/j.1467-999x.2010.04114.x
Subject(s) - credit rationing , economics , latin americans , exchange rate , government expenditure , macro , macroeconomics , government (linguistics) , government spending , rationing , monetary economics , interest rate , public finance , economic growth , political science , market economy , programming language , linguistics , philosophy , computer science , welfare , law , health care
The authors study the effects of selected macro variables on output in Mexico, following a Kaleckian framework, and using a probabilistic approach to econometrics. They find a strong positive effect of US GDP, of protection of the domestic market and of government expenditure, on Mexico's GDP, and a negative influence of higher exchange rate and credit rationing. Their results support the overall outlook proposed by the post Keynesian and the Latin American Structuralist schools of economic thought, and reject the Washington Consensus type of policies Mexico has been following during the last decades.