Abstract

PEREZ LAURRABAQUIO, Óscar. The Non-Linear Relationship Between Inflation and Economic: Growth in Mexico. Prob. Des [online]. 2014, vol.45, n.177, pp.141-167. ISSN 0301-7036.

This article aims to study the effect of prices on economic growth in Mexico during the time of the inflation objectives model. The analysis is based on modeling the non-linear relationship between inflation and the product of three economic activities in the country, using three types of panel data estimators (constant, fixed and random). The results reveal that the effect of inflation on the products of sectors has gradually fallen as price levels have decreased, in accordance with the central bank adopting inflation objectives.

Keywords : Mexico; inflation; prices; sector products; monetary policy.

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