Monetary policy between Mexico, United States of America, and Canada

Abstract

This article examines the evolution of the monetary policy of the economies that make up the North American Free Trade Agreement (NAFTA), for the period 1980-2015. Based on an empirical analysis, which includes the scrutiny of stylized facts of the monetary variables of Canada, the United States and Mexico, causality tests Granger quality and error correction models (VEC), it is concluded that, in parallel to the trade integration process of these countries, the monetary side of NAFTA exhibits divergences and convergences that imply an asymmetric integration of the economy Mexican with the United States and, to a lesser extent, with Canada.