Mexico's Path to Stability: Dollarization or Flexible Exchange Rate?
Mexico has a history of unstable prices causing economic problems like low growth and low wages. The central bank has tried different exchange rate systems, but they failed. Recently, they have been working on stabilizing prices by targeting inflation. Even though inflation has improved, it is still high compared to other countries. Some people suggest using the US dollar as Mexico's currency to help stabilize prices. This could be a good idea because Mexico is closely connected to the US and Canada through trade agreements.