In 1993, President Carlos Salinas de Gortari proposed a bill that would formally grant the Bank of Mexico, Mexico's central bank, autonomy vis-à-vis the central government. As an investor, how would you view such a proposal? What other changes might help to amplify the signals sent by this proposal?
Investors, who value price stability, would view such a bill as strongly positive. Such a law would enable the Bank of Mexico to avoid financing government deficits by printing pesos and thereby improve financial discipline. The relentless printing of ...
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