Monetary policy between Mexico, United States of America, and Canada

Alberto Merced Castro Valencia; Marco Antonio Torres Zúñiga

doi:10.46932/sfjdv4n1-028

Authors

Alberto Merced Castro Valencia
Marco Antonio Torres Zúñiga

DOI:

https://doi.org/10.46932/sfjdv4n1-028

Keywords:

monetary convergence, inflation targeting, Canada, United States, Mexico

Abstract

This article examines the evolution of the monetary policy of the economies that make up the North American Free Trade Agreement (NAFTA), for the period 1980-2015. Based on an empirical analysis, which includes the scrutiny of stylized facts of the monetary variables of Canada, the United States and Mexico, causality tests Granger quality and error correction models (VEC), it is concluded that, in parallel to the trade integration process of these countries, the monetary side of NAFTA exhibits divergences and convergences that imply an asymmetric integration of the economy Mexican with the United States and, to a lesser extent, with Canada.

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