Inflationary pressure determinants in Mexico


  • Thomas M. Fullerton Jr. University of Texas at El Paso
  • Cuauhtémoc Calderón Universidad Autónoma de Ciudad Juárez



unstable prices, inflation, labor costs


An ongoing and difficult policy issue confronting monetary authorities in many developing economies is how to maintain stable prices. Unstable prices create uncertainty, lower investment, and raise costs of doing business, thus lowering rates of growth. As a result, when a country, it is necessary to understand its particular inflationary dynamics. This paper develops a standard monetary inflation model and augments it to include imported inputs and labor costs in a theoretically plausible manner. Implications for implementing an empirical version of the model are also discussed.



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How to Cite

Fullerton Jr., T. M., & Calderón, C. (1999). Inflationary pressure determinants in Mexico. Estudios Económicos De El Colegio De México, 14(1), 33–51.