Browsing by Subject "Exchange rate channel"
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Item Open Access Exchange rate regime, world oil prices and the Mexican economy(Springer Nature Switzerland AG, 2021-11-11) Osmanbeyoglu, Merve; Dogan, N.; Berument, M. HakanThis paper studies the effects of the exchange rate regime of the Mexican economy on how the oil price shocks affect the domestic economic performance by considering the period from January 1992 to December 2019. The empirical evidence reported here reveals that a positive oil price shock appreciates the local currency, increases interest rates, output, and prices. However, once the exchange rate channel is closed, the interest rate increases, and prices will be higher. However, we could not find any statistically significant evidence of the effect on output changes with the exchange rate regime. Thus, the flexible exchange rate regime may promote price stability when the Mexican economy faces an oil price shock.Item Open Access Exchange rate regime, world oil prices, and the Mexican economy(2020-06) Berument, M. HakanThis thesis studies the effects of the exchange rate regime of the Mexican economy on how the oil price shocks affect the domestic economic performance by considering the period from January 1992 to December 2019. The empirical evidence reported here reveals that a positive oil price shock appreciates the local currency, increases the interest rate, output, and prices. Furthermore, once the exchange rate channel is closed, an increase in the interest rate and prices will be higher. However, we could not find statistically significant evidence that the effect on output does change with the exchange rate regime. This conclusion is parallel of a country that has a low level of inflation commitment.