| Journal: | Gaceta de economía |
| Database: | CLASE |
| System number: | 000417509 |
| ISSN: | 1405-7085 |
| Authors: | Estefan Dávila, Manuel Alejandro1 |
| Institutions: | 1Institute for Fiscal Studies, Londres. Reino Unido |
| Year: | 2014 |
| Volumen: | 20 |
| Number: | 33 |
| Pages: | 59-76 |
| Country: | México |
| Language: | Inglés |
| Document type: | Artículo |
| Approach: | Analítico, descriptivo |
| English abstract | I use the Blanchard & Quah (1989) decomposition to identify the permanent and transitory components of Mexican GDP and unemployment rates between 1985 and 2011. The main findings of this exercise are: (1) the transitory, or so called “demand shocks”, explain the majority of fluctuations in unemployment, and (2) the perma- nent, or so called “supply shocks”, explain the majority of fluctuations in GDP. The first finding corresponds closely to the conventional viewpoint that unemployment in Mexico is structural, while the second finding corresponds to the idea that negative fluctuations in production are caused by severe economic crises that impact the long-run performance of the Mexican economy. I use these results to make two policy recommendations: (1) trade, fiscal, and monetary policy must be designed to generate financial stability, and (2) changes in labor legislation must be made in order to reduce unemployment permanently |
| Disciplines: | Economía |
| Keyword: | Comercio nacional, Condiciones económicas, Economía descriptiva, Planificación económica, Teorías económicas, México, Desempleo, Fluctuaciones del mercado, Economía monetaria, Política económica |
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