Interpreting central bank independence in Mexico

Banks and banking, Central ; Mexico

Is tighter fiscal policy expansionary under fiscal dominance? Hypercrowding out in Latin America

We test for hypercrowding out as a signal of market concerns over fiscal dominance in five Latin American countries. Hypercrowding out occurs when fiscally dominated governments’ domestic credit demands are perceived as so intrusive to a nation’s financial system that a move towards fiscal surplus lowers interest rates and increases growth. We sample five Latin American countries to test for these relationships. Judged by the results of vector error correction models, three nations test clearly positive, suggesting market concern despite their recent efforts towards fiscal balance.

Plan for the uniform mapping of earth resources and environmental complexes from Skylab imagery. Assessment of natural vegetation, environmental, and crop analogs

The author has identified the following significant results. For interpreting a wide range of natural vegetation analogs, S-190A color infrared and the ERTS-1 color composite were consistently more useful than were conventional color or black and white photos. Color infrared was superior for five vegetation analogs while color was superior for only three. The errors in identification appeared to associate more with black and white single band images than with multiband color. For rice crop analogs, spectral and spatial discriminations both contribute to the usefulness of images for data collection. Tests and subjective analyses conducted in this study indicated that the spectral bands exploited in color infrared film were the most useful for agricultural crop analysis. Accuracy of crop identification on any single date of Skylab images was less than that of multidate analysis due to differences in crop calendar, cultural practices used, rice variety, planting date, planting method, water use, fertilization, disease, or mechanical problems

Default risk, dollarization, and currency substitution in Mexico

Money ; Mexico

Is NAFTA economic integration?

Most economists agree that trade liberalization raises incomes and living standards. To achieve trade liberalization, though, countries must sometimes first reach trade agreements. And trade agreements, as William Gruben and John Welch observe, may intertwine elements of both liberalization and protectionism. As an example, Gruben and Welch examine the negotiation process that preceded passage of the North American Free Trade Agreement. ; Is NAFTA economic integration? Although some authors think so, Gruben and Welch believe that interpreting NAFTA purely as economic integration is misleading. A more useful way to interpret NAFTA, they claim, is to start by recognizing it as the latest synthesis of an ongoing conflict between those who support trade liberalization and those who want trade protectionism. NAFTA offers broad-based trade openings, but it still contains restrictively protectionist components. In considering the efforts of trade liberalization advocates and trade protectionists, the authors also attempt to show how members of these pressure groups form alliances, disguise their efforts, and otherwise attempt to achieve their goals.North American Free Trade Agreement

Banking and currency crisis recovery: Brazil's turnaround of 1999

Of the many countries that suffered exchange rate crises in the 1990s, Brazil and Korea recovered most rapidly. This article analyzes the Brazilian recovery. William Gruben and John Welch focus on the freedom that Brazilian bank health gave to the central bank to pursue a postcrisis monetary policy that would settle markets, reestablish price stability, and encourage investment and the return of foreign capital. Brazilian bank health was not an accident; it reflected not only bank responses to precrisis changes in government regulations, but also to large precrisis interest rate increases associated in part with Brazil's efforts to defend its currency.Banks and banking - Brazil