Mexico's Stabilization Program Leads to Historic Inflation Reduction and Economic Growth
Mexico has made significant progress in stabilizing its economy since the late 1990s, reducing inflation rates to the lowest in over 30 years. The main goal was to evaluate the achievements and shortcomings of Mexico's stabilization program. The approach involved using inflation targeting under floating exchange rates and other economic policies. The key finding is that while progress has been made, there have been challenges in meeting inflation targets, leading to a loss of credibility in monetary policy. The stagnation of disinflation since 2002 has been a setback, highlighting the need for improved communication and operation of monetary policy to control inflation.