Question
HI, could you please help me on this question? At the monetary policy meeting in February 2021, the central bank of Mexico cut its policy
HI, could you please help me on this question?
At the monetary policy meeting in February 2021, the central bank of Mexico cut its policy rate for the first time since September in an effort to stimulate the economy. However, after the United States' government announced in March 2021 the introduction of a new financial stimulates package to boost the US economy, the Governor of the Mexican central bank announced that the board would consider the impact of the US fiscal stimulates in Mexican economy, and weather it is necessary to change their monetary response.
Explain how a US fiscal stimulates may affect the Mexican economy and why the central bank may response to it.
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