Cuasi paridad del poder adquisitivo: cambio estructural en el tipo de cambio real peso mexicano / dólar estadounidense

This paper analyzes whether the real exchange-rate of the Mexican peso/US dollar revert to a long-run equilibrium value, and whether this value is unique. We use a method for testing stationarity, that allows for an unknown number of structural breaks in the level of the series. Using a long span of...

Full description

Bibliographic Details
Main Authors: Noriega, Antonio E., Medina, Lorena
Format: Online
Language:English
Editor: El Colegio de México, A.C. 2003
Subjects:
Online Access:https://estudioseconomicos.colmex.mx/index.php/economicos/article/view/183
Journal:

Estudios Económicos

Description
Summary:This paper analyzes whether the real exchange-rate of the Mexican peso/US dollar revert to a long-run equilibrium value, and whether this value is unique. We use a method for testing stationarity, that allows for an unknown number of structural breaks in the level of the series. Using a long span of annual data covering the period 1925-1994, our results provide evidence favoring long-run Quasi-Purchasing Power Parity. In particular, we find that the real peso/dollar exchange rate has fluctuated stationarily around a 70 year long-run level, perturbed by a series of events, both domestic and external, in or around 1981.