FOREIGN-EXCHANGE AND MONETARY-POLICY IN MEXICO

The liberalization and reform of the Mexican economy has been headline material for several years. As Agustin Carstens explains in his article, one of the single most important factors in this turnaround has been sound fiscal policies and the recent moves to make the central bank independent. The foreign exchange rate policies and anti-inflation monetary policies have been the backbone of Banco de Mexico's efforts. These efforts, and their attendant effect upon Mexican financial markets serve as an illustration of current reform movements.