Normal view MARC view ISBD view

Khor, Hoe Ee.

Interest Rates in Mexico The Role of Exchange Rate Expectations and International Creditworthiness / Hoe Ee Khor. [electronic resource] : Hoe Ee Khor. - Washington, D.C. : International Monetary Fund, 1991. - 1 online resource (38 p.) - IMF Working Papers; Working Paper ; No. 91/12 . - IMF Working Papers; Working Paper ; No. 91/12 .

This paper explores how interest rates on domestic financial assets in Mexico are linked to expectations of exchange rate changes and to perceptions about the default risks contained in Mexico's external debt. It is shown that the interest rate differentials between peso- and U.S. dollar-denominated domestic assets reflected some concerns about the exchange rate policy during the period under study. In addition, the evidence suggests that the interest rate on a U.S. dollar-denominated Mexican domestic asset is linked (i.e., cointegrated) to the yield implicit in the secondary market price for external debt issued by Mexico.

ISBN: 1451925387 : 15.00 USD

ISSN: 1018-5941

Standard No.: 10.5089/9781451925388.001 doi

Subjects--Topical Terms:
Cointegration
Equation
Exchange Rate Changes
Exchange Rate
Probability

Subjects--Geographic Terms:
Mexico