IMF Staff Country Reports

Mexico: Selected Issues

Publication Date:

August 13, 2004

Electronic Access:

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Summary:

This Selected Issues paper analyzes reserve adequacy in Mexico. Reserve adequacy has been of renewed interest, as the authorities have introduced a new rules-based mechanism of U.S. dollar sales to reduce the rate of reserve accumulation. The paper examines the recent experience with Mexico’s fiscal management tools in light of the need for further consolidation. It reviews evidence on the cyclical behavior of fiscal policy in Mexico, finding that it has generally been procyclical since the early 1990s. The paper also examines the determinants of inflation in Mexico since 1997.

Series:

Country Report No. 2004/250

Subject:

Central banks Currencies Dollarization Exchange rates Foreign exchange Inflation Monetary policy Prices Reserves accumulation Revenue administration