Julio A. Santaella

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Financial crises of the last decade have been accompanied by large drops in output and total factor productivity. Existing literature has explained these outcomes through exogenous TFP shocks, the origins of which are unknown. In this paper, we build a two sector dynamic general equilibrium model of a small open economy with financial frictions on working(More)
Mexico adopted a floating exchange rate regime in December 1994. The Bank of Mexico's monetary policy gives attention to maintain "orderly conditions in foreign exchange markets." The Bank of Mexico relies primarily on the control of the overnight interest rate in conducting its monetary policy. The question arises whether this extremely short-term interest(More)
We examine whether Mexico’s disinflation experience during 1987-94 fits the widely accepted set of stylized facts of exchange-ratebased stabilization (ERBS) on inflation, the boom-recession business cycle, and the external sector. A cursory look at Mexican data shows that the experience fits quite closely the stylized facts of ERBS. However, the paper shows(More)
In recent years the Bank of Mexico has made a series of rules-based interventions in the peso/dollar foreign exchange market. We assess the effectiveness of two specific interventions that occurred in periods of great stress for the Mexican economy. The aims of these two interventions were, respectively, to provide liquidity and to promote orderly(More)
This study aim to determine the proportion of traffic rule infractions in Cali, Colombia, in places where a road traffic injury (RTI) occurred. Description of videotaping of sites where a person was injured in an RTI in 2009. Counts of road users and infractions were established for each road user group and were compared using a Z-test. They were found(More)
This paper describes major policy actions that have recently contributed to the development of the Mexican domestic-currency debt market, and concomitant benefits. Among the most important are a significant reduction in exchange-rate exposure and a decline in refinancing risk for the government and private sectors alike. Another positive outcome of the(More)
We study the effects of the inflation targets established for December of each year on the conduct of monetary policy. The hypothesis tested postulates that the annual inflation targets could have produced some seasonality in the operation of the overnight interbank funds market in which the government funding rate is determined. To test this hypothesis a(More)
The paper analyzes the role of labor market segmentation and relative wage rigidity in the transmission process of disinflation policies in an open economy facing imperfect capital markets. Wages are flexible in the nontradables sector, and based on efficiency factors in the tradables sector. With perfect labor mobility, a permanent reduction in the(More)
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