Inflation and interest rates are much more volatile

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Mexico tends to have much higher inflation than the United States and also much higher interest rates than the United States. Inflation and interest rates are much more volatile in Mexico than in industrialized countries. The value of the Mexican peso is typically more volatile than the currencies of industrialized countries, from a U.S. perspective; it has typically depreciated from one year to the next, but the degree of depreciation has varied substantially. What are some factors influencing this?

Reference no: EM131126494

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