US EditionStability and Monetary Policy
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What can and should be done by the Board of Government of the Bank of Mexico in the face of a problem of stagflation? When we talk about stagflation, we mean an unusual situation: the economy is very weak, stagnant, but inflation is still high. It is normal for low unemployment to be accompanied by faster growth in wages. That is, if the economy is strong and, as a reflection, the labour market, inflation is higher. On the other hand, if the eco…
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