Inflation targeting and the consistency of monetary policy decisions in Mexico: an empirical analysis with discrete choice models

Muñoz Torres, R.I. and Shepherd, D. 2014. Inflation targeting and the consistency of monetary policy decisions in Mexico: an empirical analysis with discrete choice models. The Manchester School. 82 (S2), pp. 21-46. https://doi.org/10.1111/manc.12039

TitleInflation targeting and the consistency of monetary policy decisions in Mexico: an empirical analysis with discrete choice models
TypeJournal article
AuthorsMuñoz Torres, R.I. and Shepherd, D.
Abstract

This paper examines the nature of monetary policy decisions in Mexico using discrete choice models applied to the Central Bank's explicit monetary policy instrument. We find that monetary policy adjustments in Mexico have been strongly consistent with the CB's inflation targeting strategy. We also find evidence that monetary policy responds in a forward-looking manner to deviations of inflation from the target and that observed policy adjustments exhibit asymmetric features, with stronger responses to positive than to negative deviations of inflation from the target and a greater likelihood of policy persistence during periods when monetary policy is tightened, compared with periods when policy is loosened.

JournalThe Manchester School
Journal citation82 (S2), pp. 21-46
ISSN1463-6786
Year2014
PublisherWiley
Digital Object Identifier (DOI)https://doi.org/10.1111/manc.12039
Publication dates
PublishedDec 2014

Related outputs

Impact of Covid-19 Policies on Women Self-employment Rates: An Integrated Conceptual Framework
Abubakar, Y. A., Saridakis, G., Litsardopoulos, N., Muñoz Torres, R.I., Sookram, S. and Hosein, R. 2023. Impact of Covid-19 Policies on Women Self-employment Rates: An Integrated Conceptual Framework. International Review of Entrepreneurship. 21 (1), pp. 1-34 1691.

From subsistence farming to agribusiness and nonfarm entrepreneurship: Does it improve economic conditions and well-being?
Saridakis, G., Georgellis, Y., Muñoz Torres, R.I., Mohammed, A-M. and Blackburn, R. 2021. From subsistence farming to agribusiness and nonfarm entrepreneurship: Does it improve economic conditions and well-being? Journal of Business Research. 136, pp. 567-579. https://doi.org/10.1016/j.jbusres.2021.07.037

Variations in the determinants of regional development disparities in rural China
Zheng L., Shepherd, D. and Enowbi Batuo, M. 2021. Variations in the determinants of regional development disparities in rural China. Journal of Rural Studies. 82, pp. 29-36. https://doi.org/10.1016/j.jrurstud.2020.08.011

Do regional self-employment rates converge in the UK? Empirical evidence using club-clustering algorithm
Saridakis, G., Mendoza, M.A., Hand C. and Muñoz Torres, R.I. 2020. Do regional self-employment rates converge in the UK? Empirical evidence using club-clustering algorithm. The Annals of Regional Science. 65, pp. 179-192. https://doi.org/10.1007/s00168-020-00979-3

Exploring the relationship between job satisfaction and organizational commitment: An instrumental variable approach
Saridakis, G., Lai, Y., Muñoz Torres, R.I. and Gourlay, S. 2020. Exploring the relationship between job satisfaction and organizational commitment: An instrumental variable approach. International Journal of Human Resource Management. 31 (13), pp. 1739-1769. https://doi.org/10.1080/09585192.2017.1423100

Monetary Policy Rules with PID Control Features: Evidence from the UK, USA and EU
Shepherd, D., Muñoz Torres, R.I. and Saridakis, G. 2019. Monetary Policy Rules with PID Control Features: Evidence from the UK, USA and EU. International Review of Applied Economics. 33 (6), pp. 737-755 CIRA-2018-0245. https://doi.org/10.1080/02692171.2019.1585766

Do self-employment rates converge? Evidence from European OECD countries
Saridakis, G., Mendoza, M.A., Muñoz Torres, R.I. and Hand, C. 2018. Do self-employment rates converge? Evidence from European OECD countries. Journal of Common Market Studies. 57 (3), pp. 551-562. https://doi.org/10.1111/jcms.12834

Economy and Divorces: Their impact over time on the Self-Employment Rates in Spain
Saridakis, G., Mohammed, A.M., Garcia-Iglesias, J.M. and Muñoz Torres, R.I. 2018. Economy and Divorces: Their impact over time on the Self-Employment Rates in Spain. Journal of Family and Economic Issues. 39 (3), pp. 422-435. https://doi.org/10.1007/s10834-018-9575-6

Actual and Intended Growth in Family Firms and Non-Family Owned Firm: Are They Different?
Saridakis, G., Lai, Y., Muñoz Torres, R.I. and Mohammed, A.M. 2018. Actual and Intended Growth in Family Firms and Non-Family Owned Firm: Are They Different? Journal of Organizational Effectiveness: People and Performance. 5 (1), pp. 2-21 602747. https://doi.org/10.1108/JOEPP-04-2017-0033

The Impact of Regional and Institutional Factors on Labour productive Performance: Evidence from the Township and Village Enterprise Sector in China
Zheng, L., Enowbi Batuo, M. and Shepherd, D. 2017. The Impact of Regional and Institutional Factors on Labour productive Performance: Evidence from the Township and Village Enterprise Sector in China. World Development. 96, pp. 591-598. https://doi.org/10.1016/j.worlddev.2017.04.006

Economic Growth and Regional Integration in Mexico
Shepherd, D., Muñoz Torres, R.I. and Mendoza, M.A. 2017. Economic Growth and Regional Integration in Mexico. Economic Issues. 22 (1), pp. 89-110.

The Relationship between Self-employment and Unemployment in the Long-Run: A Panel Cointegration Approach Allowing For Breaks
Saridakis, G., Mendoza, M.A., Muñoz Torres, R.I. and Glover, J. 2016. The Relationship between Self-employment and Unemployment in the Long-Run: A Panel Cointegration Approach Allowing For Breaks . Journal of Economic Studies. 43 (3), pp. 358-379. https://doi.org/10.1108/JES-11-2013-0169

Regional Output Growth and the Impact of Macroeconomic Shocks in Mexico
Shepherd, D., Muñoz Torres, R.I. and Mendoza, M.A. 2014. Regional Output Growth and the Impact of Macroeconomic Shocks in Mexico. International Review of Applied Economics . 28 (3), pp. 293-210. https://doi.org/10.1080/02692171.2013.872083

Do human resource practices enhance organizational commitment in SMEs with low employee satisfaction?
Saridakis, G., Muñoz Torres, R.I. and Johnstone, S. 2013. Do human resource practices enhance organizational commitment in SMEs with low employee satisfaction? British Journal of Management. 24 (3), pp. 445-458. https://doi.org/10.1111/j.1467-8551.2012.00814.x

Did the Bank of Mexico follow a systematic behaviour in its transition to an inflation targeting regime?
Garcia-Iglesias, J.M., Muñoz Torres, R.I. and Saridakis, G. 2013. Did the Bank of Mexico follow a systematic behaviour in its transition to an inflation targeting regime? Applied Financial Economics. 23 (14), pp. 1205-1213. https://doi.org/10.1080/09603107.2013.799755

Regional dimensions of the Australian business cycle
Dixon, R. and Shepherd, D. 2013. Regional dimensions of the Australian business cycle. Regional Studies. 47 (2), pp. 264-281. https://doi.org/10.1080/00343404.2011.571242

Employment volatility and the great moderation: Evidence from the Australian states and territories
Shepherd, D. and Dixon, R. 2012. Employment volatility and the great moderation: Evidence from the Australian states and territories. Australasian Journal of Regional Studies. 18 (2), pp. 159-181.

The effect of the exchange rates on investment in Mexican manufacturing industry
Caglayan, M. and Muñoz Torres, R.I. 2011. The effect of the exchange rates on investment in Mexican manufacturing industry. Open Economies Review. 22 (4), pp. 669-683. https://doi.org/10.1007/s11079-010-9166-0

State and territory employment and unemployment patterns in Australia
Dixon, R. and Shepherd, D. 2011. State and territory employment and unemployment patterns in Australia. Australian Economic Review. 44 (2), pp. 196-206. https://doi.org/10.1111/j.1467-8462.2011.00637.x

Economic growth and regional integration in Mexico
Shepherd, D., Muñoz Torres, R.I. and Mendoza, M.A. 2011. Economic growth and regional integration in Mexico. in: Muralidhar Rao, N.V. (ed.) Proceedings of the Annual International Conference on Qualitative and Quantitative Economics Research (QQE 2011) Singapore Global Science & Technology Forum. pp. Q31-Q37

Models of labour services and estimates of total factor productivity
Dixon, R. and Shepherd, D. 2010. Models of labour services and estimates of total factor productivity. Applied Economics. 42 (28), pp. 3629-3634. https://doi.org/10.1080/00036840802314549

The cyclical dynamics and volatility of Australian output and employment
Shepherd, D. and Dixon, R. 2008. The cyclical dynamics and volatility of Australian output and employment. Economic Record. 84 (264), pp. 34-49. https://doi.org/10.1111/j.1475-4932.2008.00445.x

Fuzzy modelling and estimation of economic relationships
Shepherd, D. and Shi, F.K.C. 2006. Fuzzy modelling and estimation of economic relationships. Computational Statistics & Data Analysis. 51 (1), pp. 417-433. https://doi.org/10.1016/j.csda.2006.04.004

The cyclical dynamics and volatility of Australian output and employment
Dixon, R. and Shepherd, D. 2006. The cyclical dynamics and volatility of Australian output and employment. Melbourne, Australia Department of Economics, University of Melbourne.

The structure of the Australian growth process: a Bayesian model selection view of Markov switching
Taylor, A., Shepherd, D. and Duncan, S. 2005. The structure of the Australian growth process: a Bayesian model selection view of Markov switching. Economic Modelling. 22 (4), pp. 628-645. https://doi.org/10.1016/j.econmod.2005.04.001

Inflation Targeting in Emerging Economies: A Comparative Sacrifice Ratio Analysis
Muñoz Torres, R.I. 2005. Inflation Targeting in Emerging Economies: A Comparative Sacrifice Ratio Analysis. in: Motamen-Samadian, S. (ed.) Dynamic Models and Their Applications in Emerging and Global Markets Palgrave Macmillan. pp. 77-108

Capacity utilisation and corporate restructuring: a comparative study of the US, UK and other EU countries
Driver, C. and Shepherd, D. 2005. Capacity utilisation and corporate restructuring: a comparative study of the US, UK and other EU countries. Cambridge Journal of Economics. 29 (1), pp. 119-140. https://doi.org/10.1093/cje/bei002

Testing for common cycles in money, nominal income and prices
Hall, S. and Shepherd, D. 2003. Testing for common cycles in money, nominal income and prices. Manchester School. 71 (supplement), pp. 68-84. https://doi.org/10.1111/1467-9957.71.s.5

Inflation and capacity constraints in Australian manufacturing industry
Shepherd, D. and Driver, C. 2003. Inflation and capacity constraints in Australian manufacturing industry. Economic Record. 79 (245), pp. 182-195. https://doi.org/10.1111/1475-4932.t01-1-00097

The relationship between regional and national unemployment
Shepherd, D. and Dixon, R. 2002. The relationship between regional and national unemployment. Regional Studies. 36 (5), pp. 469-480. https://doi.org/10.1080/00343400220137092

Trends and cycles in Australian state and territory unemployment rates
Dixon, R. and Shepherd, D. 2001. Trends and cycles in Australian state and territory unemployment rates. Economic Record. 77 (238), pp. 252-269. https://doi.org/10.1111/1475-4932.00021

Regional unemployment disparities in Australia
Dixon, R., Shepherd, D. and Thomson, J. 2001. Regional unemployment disparities in Australia. Regional Studies. 35 (2), pp. 93-102. https://doi.org/10.1080/00343400120033089

Permalink - https://westminsterresearch.westminster.ac.uk/item/8z0z9/inflation-targeting-and-the-consistency-of-monetary-policy-decisions-in-mexico-an-empirical-analysis-with-discrete-choice-models


Share this

Usage statistics

155 total views
0 total downloads
These values cover views and downloads from WestminsterResearch and are for the period from September 2nd 2018, when this repository was created.