Tipo de cambio y determinantes monetarios en el periodo de flotación en México

the paper analyzes causality relationships among the mexican peso/usd exchange rate and a series of variables that monetary models from the asset markets approach to the exchange rate identify as fundamentals of the exchange rate. the empirical evidence suggests that during the floating exchange rate regime in mexico, the nominal exchange rate granger causes the fundamentals, consistent with the tenets of the asset market approach to the exchange rate.