Interest Rates in Mexico : The Role of Exchange Rate Expectations and International Creditworthiness

The Role of Exchange Rate Expectations and International Creditworthiness

Interest Rates in Mexico : The Role of Exchange Rate Expectations and International Creditworthiness
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... READ MORE...

Publication date: January 1991
ISBN 9781451925388
$15.00

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